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Anger Co.'s accounts payable on Decemb balance of P2,300,000 before any possible a following: Goods in transit purchased on credit for P23 destination term were recorded and include count on December 31, 20xl as “goods in trans Anger Co choolco di

Anger Co.'s accounts payable on Decemb balance of P2,300,000 before any possible a following: Goods in transit purchased on credit for P23 destination term were recorded and include count on December 31, 20xl as “goods in trans Anger Co choolco di

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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7. Anger Co.'s accounts payable on December 31, 20x1 had a balance of P2,300,000 before any possible adjustment for the following: a) Goods in transit purchased on credit for P23,000 under an FOB destination term were recorded and included in the inventory count on December 31, 20x1 as “goods in transit." b) Anger Co. checks, drawn for P32,000, were found in the safe box during the Dec. 31, 20x1 securities count. c) Goods purchased under an 'FOB destination, freight collect' term were received and recorded at the invoice cost of P60,000 on Dec. 29, 20x1. The cash payment for the related freight of P5,000 was debited to the 'Freight-out account. d) Goods worth P90,000 received on consignment from Dishonor Co. were recorded as an increase in accounts payable. The goods remain unsold as of Dec. 31, 20x1. e) The balance of accounts payable includes P64,000 cost of goods purchased under an FOB shipping point term that were lost in transit. Anger Co. recorded a corresponding claim against the carrier. How much is the adjusted balance of accounts payable? b. 2,214,000 a. 2,150,000 c. 2,240,000 d. 2,304,000
Transcribed Image Text:7. Anger Co.'s accounts payable on December 31, 20x1 had a balance of P2,300,000 before any possible adjustment for the following: a) Goods in transit purchased on credit for P23,000 under an FOB destination term were recorded and included in the inventory count on December 31, 20x1 as “goods in transit." b) Anger Co. checks, drawn for P32,000, were found in the safe box during the Dec. 31, 20x1 securities count. c) Goods purchased under an 'FOB destination, freight collect' term were received and recorded at the invoice cost of P60,000 on Dec. 29, 20x1. The cash payment for the related freight of P5,000 was debited to the 'Freight-out account. d) Goods worth P90,000 received on consignment from Dishonor Co. were recorded as an increase in accounts payable. The goods remain unsold as of Dec. 31, 20x1. e) The balance of accounts payable includes P64,000 cost of goods purchased under an FOB shipping point term that were lost in transit. Anger Co. recorded a corresponding claim against the carrier. How much is the adjusted balance of accounts payable? b. 2,214,000 a. 2,150,000 c. 2,240,000 d. 2,304,000
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