Let’s Check Fill in the necessary words or amounts to complete the following statements. A, A branch is a unit of a business enterprise that sells merchandise at a location some distance from the home office A branch generally is operated as a profit center of the home office; however, a division may be organized as a subsidiary corporation. ‘The Home Office ledger account and the Investment in Branch ledger account are reciprocal ledger accounts whose balances must be eliminated when _combined financial statements for the home office and branch are prepared. Ifa home office bills merchandise to branches at a price above home office cost, the markup on the unsold merchandise is not _realized and is eliminated for combined financial statements for the home office and its branches. If the Dorco Branch remits cash to the home office of Shave Company and a decentralized accounting system is used, the Dorco Branch debits the home office ledger account and credits Cash; the home office debits Cash and credits the __ investment in branch account. ‘Some operating expenses incurred by the home office relate to branch operations and are allocated to the branch by a debit to the investment in branch ledger account and a credit to the ‘operating expenses account in the accounting records of the home office.