Black Company reported accounts payable on December 31, 2020 P4,500,000 before any necessary year-end adjustment relating to the following transactions - On December 27, 2020, Black wrote and recorded checks to creditors totaling P2,000,000 causing a overdraftofP500,000inBlack'sbankaccountonDecember31,2020.ThechecksweremailedonJanuary 10, 2021. - OnDecember28,2020,BlackpurchasedandreceivedgoodsforP750,000,terms2/10,n/30.Blackrecords purchases and accounts payable at net amount. The invoice was recorded and paid January 3,2021. - Goods shipped F.O.B. destination on December 20, 2020 from a vendor to Black were received January 2, 2021. The invoice cost wasP325,000. On December 31, 2020, what amount should be reported as accountspayable? a. 7,575,000 b. 7,250,000 c. 7,235,000 d. 7,553,500
Black Company reported accounts payable on December 31, 2020 P4,500,000 before any necessary year-end adjustment relating to the following transactions - On December 27, 2020, Black wrote and recorded checks to creditors totaling P2,000,000 causing a overdraftofP500,000inBlack'sbankaccountonDecember31,2020.ThechecksweremailedonJanuary 10, 2021. - OnDecember28,2020,BlackpurchasedandreceivedgoodsforP750,000,terms2/10,n/30.Blackrecords purchases and accounts payable at net amount. The invoice was recorded and paid January 3,2021. - Goods shipped F.O.B. destination on December 20, 2020 from a vendor to Black were received January 2, 2021. The invoice cost wasP325,000. On December 31, 2020, what amount should be reported as accountspayable? a. 7,575,000 b. 7,250,000 c. 7,235,000 d. 7,553,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:Black Company reported accounts payable on December 31, 2020 P4,500,000 before any necessary year-end adjustments
relating to the following transactions
- On December 27, 2020, Black wrote and recorded checks to creditors totaling P2,000,000 causing an
overdraftofP500,000inBlack'sbankaccountonDecember31,2020.ThechecksweremailedonJanuary 10, 2021.
- OnDecember28,2020,BlackpurchasedandreceivedgoodsforP750,000,terms2/10,n/30.Blackrecords purchases and
accounts payable at net amount. The invoice was recorded and paid January 3,2021.
- Goods shipped F.O.B. destination on December 20, 2020 from a vendor to Black were received January 2, 2021. The
invoice cost wasP325,000.
On December 31, 2020, what amount should be reported as accountspayable?
a. 7,575,000
b. 7,250,000
c. 7,235,000
d. 7,553,500
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