Statement: At December 31, 2021, goods costing P125,000 are in transit from a supplier. Terms of purchase of the said goods is FOB origin. The goods and the related invoice have not been received as of year-end. Question: Is the 125,000 amount mentioned in the statement a current liability or no? Why?

Statement: At December 31, 2021, goods costing P125,000 are in transit from a supplier. Terms of purchase of the said goods is FOB origin. The goods and the related invoice have not been received as of year-end. Question: Is the 125,000 amount mentioned in the statement a current liability or no? Why?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

M Corp. receives advance payments with special orders for containers constructed to customer specifications. Related information for 2022 is as follows ($ in millions): Customer advances balance, Dec. 31, 2021 $ 100 Advances received with 2022 orders 204 Advances applicable to orders shipped in 2022 189 Advances from orders canceled in 2022 53 What amount should M Corp. report as a current liability for advances from customers in its December 31, 2022, balance sheet? Multiple Choice $62 million. $0. $304 million. $115 million.
On June 11, 2019, Hat Trick Manufacturing sold goods worth $400,000 with terms 2/10, n/30 to Ice House sports. On June 20, 2019, hat trick manufacturing received payment for 1/2 of the amount due from ice house sports. what will be the amount reported in the financial statements for the account receivable due from ice house sports if the fiscal year ends on june 30, 2019 and the gross mwthod is used? And no plagiarism please
ABC Company has an outstanding receivable of P1,000,000 as of December 31, 2020. A test of collectability of the receivable showed that P700,000 is currently collectible and not impaired; P300,000 has been outstanding more than the required period for similar transaction and objective evidence showed that only P150,000 is considered realizable; the remaining receivable balance has been outstanding for 2 years and the company estimates that none of which will be realized. What amount should the account receivable is reported in the December 31, 2020 balance sheet? A. P700,000 B. P850,000 C. P800,000 D. P758,000
On December 31, 2021, PACMAN Co. has accounts payable of ₱ 5,000,000 before after adjustment for the following: a)Goods in transit from a vendor to PACMAN on December 31, 2021with an invoice cost of ₱100,000 purchased FOB shipping point was already recorded. b)Goods shipped FOB shipping point from a vendor to PAACMAN was lost in transit. The invoice cost of ₱70,000 was not yet recorded c)Goods shipped FOB shipping point from a vendor to PACMAN on December 31, 2021 amounting to ₱40,000 was recorded and included in the year-end physical count as “goods in transit” d)Goods in transit from a vendor to PACMAN on December 31, 2021 with an invoice cost of ₱50,000 purchased FOB shipping point was not yet recorded. The goods were received in January 2022. e)Goods with invoice cost of ₱80,000 was recorded and included in the year-end physical count as “goods in transit”. It was found out that the goods were shipped from a vendor under FOB destination. Required: Compute for the unadjusted…
Pearl Commodities Company signed a long-term noncancelable purchase commitment with a major vegetable supplier to purchase produce in 2021 at a cost of $637,000. At December 31, 2020, the produce to be purchased has a market value of $573,300. Prepare any necessary December 31, 2020 entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31