If the perpetual inventory system is used by both the home office and the branch, the reciprocal ledger accounts used by the branch are the Home Office and Shipments from Home Office accounts.

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In a perpetual inventory system, the reciprocal accounts typically used by the branch are "Home Office" and "Inventory Shipments from Home Office," not "Shipments from Home Office." The latter might be used for recording the cost of goods sent, but the key account for tracking inventory under a perpetual system is "Inventory Shipments from Home Office."

If the Perpetual Inventory System Is Used by Both the Home