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Andy Company records its purchases at gross but wishes to change to recording purchases at net.  Discounts available on purchases recorded from October 1, 2020 to September 30, 2021 totaled P400,000. Of this amount P50,000 is still available in the accounts payable balance. The balances in the accounts before conversion are: Purchases                                 8,000,000 Purchase discounts taken         100,000 Accounts payable                     3,000,000 The adjusted accounts payable on September 30, 2021 should be? A. 2,950,000 B.3,000,000 C. 2,900,000 D. 2,600,000

Andy Company records its purchases at gross but wishes to change to recording purchases at net.  Discounts available on purchases recorded from October 1, 2020 to September 30, 2021 totaled P400,000. Of this amount P50,000 is still available in the accounts payable balance. The balances in the accounts before conversion are: Purchases                                 8,000,000 Purchase discounts taken         100,000 Accounts payable                     3,000,000 The adjusted accounts payable on September 30, 2021 should be? A. 2,950,000 B.3,000,000 C. 2,900,000 D. 2,600,000

FINANCIAL ACCOUNTING
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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Andy Company records its purchases at gross but wishes to change to recording purchases at net.  Discounts available on purchases recorded from October 1, 2020 to September 30, 2021 totaled P400,000. Of this amount P50,000 is still available in the accounts payable balance. The balances in the accounts before conversion are:

Purchases                                 8,000,000

Purchase discounts taken         100,000

Accounts payable                     3,000,000

The adjusted accounts payable on September 30, 2021 should be?

A. 2,950,000
B.3,000,000
C. 2,900,000
D. 2,600,000
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