CHAS, Inc. is engaged in the sale of parts for electric gate motors for residential and commercial garages and driveways. CHAS closes its books on December 31 of each year. The 10k report and the 2021 annual report were published on March 25, 2022. On December 15, 2021, CHAS purchased inventory on credit for $850,000 with terms 3/10, n/30. The company uses the gross method to account for its accounts payable. On December 23, 2021, 60% of the balance due was paid in cash, and the rest was paid in January 2022. The balance paid in January 2022 was made with working capital from the company itself. Determine the balance of accounts payable that the company should have reported as part of its current debts in the 2021 Annual Report (10К). to. $510,000 b. $340,000

CHAS, Inc. is engaged in the sale of parts for electric gate motors for residential and commercial garages and driveways. CHAS closes its books on December 31 of each year. The 10k report and the 2021 annual report were published on March 25, 2022. On December 15, 2021, CHAS purchased inventory on credit for $850,000 with terms 3/10, n/30. The company uses the gross method to account for its accounts payable. On December 23, 2021, 60% of the balance due was paid in cash, and the rest was paid in January 2022. The balance paid in January 2022 was made with working capital from the company itself. Determine the balance of accounts payable that the company should have reported as part of its current debts in the 2021 Annual Report (10К). to. $510,000 b. $340,000

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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