A company’s accounts payable dated December 31, 2021, totaled P1,000,000 before any necessary year-end adjustments relating to the following transactions and information: On December 27, 2021, the company wrote and issued checks to creditors totaling P350,000. The issuance of the checks was recorded on January 3, 2022. On December 28, 2021, the company purchased and received goods for P150,000, terms 2/10, n/30. The company records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3, 2022 Goods shipped FOB Destination on December 20, 2021, from a vendor to the company were received on January 2, 2022. The invoice cost was P65,000. The purchase was recorded on January 2, 2022. Goods costing P120,000 were purchased from supplier with terms FOB shipping point on December 28, 2021. The company received the goods and the invoice on January 4, 2022. The P1,000,000 ledger balance of accounts payable is net of P80,000 debit balance in one supplier’s accounts representing deposit for goods to be delivered in February 2022. What amount should the company report as total accounts payable on December 31, 2021?
A company’s accounts payable dated December 31, 2021, totaled P1,000,000 before any necessary year-end adjustments relating to the following transactions and information: On December 27, 2021, the company wrote and issued checks to creditors totaling P350,000. The issuance of the checks was recorded on January 3, 2022. On December 28, 2021, the company purchased and received goods for P150,000, terms 2/10, n/30. The company records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3, 2022 Goods shipped FOB Destination on December 20, 2021, from a vendor to the company were received on January 2, 2022. The invoice cost was P65,000. The purchase was recorded on January 2, 2022. Goods costing P120,000 were purchased from supplier with terms FOB shipping point on December 28, 2021. The company received the goods and the invoice on January 4, 2022. The P1,000,000 ledger balance of accounts payable is net of P80,000 debit balance in one supplier’s accounts representing deposit for goods to be delivered in February 2022. What amount should the company report as total accounts payable on December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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59 . A company’s accounts payable dated December 31, 2021, totaled P1,000,000 before any necessary year-end adjustments relating to the following transactions and information:
- On December 27, 2021, the company wrote and issued checks to creditors totaling P350,000. The issuance of the checks was recorded on January 3, 2022.
- On December 28, 2021, the company purchased and received goods for P150,000, terms 2/10, n/30. The company records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3, 2022
- Goods shipped FOB Destination on December 20, 2021, from a vendor to the company were received on January 2, 2022. The invoice cost was P65,000. The purchase was recorded on January 2, 2022.
- Goods costing P120,000 were purchased from supplier with terms FOB shipping point on December 28, 2021. The company received the goods and the invoice on January 4, 2022.
- The P1,000,000 ledger balance of accounts payable is net of P80,000 debit balance in one supplier’s accounts representing deposit for goods to be delivered in February 2022.
What amount should the company report as total accounts payable on December 31, 2021?
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