ABC Company’s Accounts Payable on December 31, 2022, totaled P100,000 before any necessary year-end adjustments relating to the following transactions:On December 21, 2022, ABC Company purchased and recorded goods with an invoice price of P300,000, terms 2/15, n/30 from DEF Company. This amount had not been paid as of December 31, 2022. ABC Company is using the net method for all purchases. Goods shipped FOB Destination on December 23, 2022 from a vendor were lost in transit. The invoice cost of P3,500 was not recorded as of December 31, 2022. Goods shipped FOB Shipping Point on December 26, 2022 from a vendor were still in transit as of December 31, 2022. The invoice cost of P15,000 was recorded on December 31, 2022.Goods purchased and recorded goods with an invoice price of P5,000 from GHI Company on December 28, 2022, terms 3/15, n/45. ABC Company paid its account in full on January 5, 2023.How much is the total adjusted accounts payable on December 31, 2022?

Accounts Payable refers to the money that a company owes to its suppliers or vendors for the goods…

Answered: ABC Company’s Accounts Payable on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC Company’s Accounts Payable on December 31, 2022, totaled P100,000 before any necessary year-end adjustments relating to the following transactions:

On December 21, 2022, ABC Company purchased and recorded goods with an invoice price of P300,000, terms 2/15, n/30 from DEF Company. This amount had not been paid as of December 31, 2022. ABC Company is using the net method for all purchases.
Goods shipped FOB Destination on December 23, 2022 from a vendor were lost in transit. The invoice cost of P3,500 was not recorded as of December 31, 2022.
Goods shipped FOB Shipping Point on December 26, 2022 from a vendor were still in transit as of December 31, 2022. The invoice cost of P15,000 was recorded on December 31, 2022.
Goods purchased and recorded goods with an invoice price of P5,000 from GHI Company on December 28, 2022, terms 3/15, n/45. ABC Company paid its account in full on January 5, 2023.

How much is the total adjusted accounts payable on December 31, 2022?

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