As a CPA and audit manager of Royal & Percy, LLP, you have been requested by John James, president of James Company, a nonpublic enterprise, to write a memo to James Company's accounting staff explaining the purpose of the Allowance for Overvaluation of Inventories: Post Street Branch ledger account and the typical journal entries in the account. James Company has just established Post Street Branch, its first branch, and is planning for the home office to ship merchandise to the branch at a markup of 20% above home office cost.
Write the memo requested by John James.

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The Answer of As a CPA and audit manager of Royal & Percy, LLP, you have been requested by John James, president of James Company, a nonpublic enterprise, to write a memo to James Company's accounting staff explaining the purpose of the Allowance for Overvaluation of Inventories: Post Street Branch ledger account and the typical journal entries in the account. James Company has just established Post Street Branch, its first branch, and is planning for the home office to ship merchandise to the branch at a markup of 20% above home office cost.
Write the memo requested by John James.

As a CPA and Audit Manager of Royal & Percy