The balance in Viray Company's accounts payable account at December 31, 2021 was P900,000, before any necessary year-end adjustment relating to the following: a. Goods in transit from a vendor to Viray on December 31, 2021. The invoice cost was P50,000, and the goods were shipped FOB Shipping point on December 29, 2021. The goods were received on January 4, 2022. b. Goods shipped FOB shipping point on December 20, 2021 from a vendor to Viray was lost in transit. The invoice cost was P25,000. On January 5, 2022, Viray filed a P25,000 claim against the common carrier. c. On December 31, 2021, Viray has a P20,000 debit balance in accounts payable to a supplier resulting from an advance payment for goods to be manufactured. What amount should be reported as accounts payable on its December 31, 2021 financial statement?

The balance in Viray Company's accounts payable account at December 31, 2021 was P900,000, before any necessary year-end adjustment relating to the following: a. Goods in transit from a vendor to Viray on December 31, 2021. The invoice cost was P50,000, and the goods were shipped FOB Shipping point on December 29, 2021. The goods were received on January 4, 2022. b. Goods shipped FOB shipping point on December 20, 2021 from a vendor to Viray was lost in transit. The invoice cost was P25,000. On January 5, 2022, Viray filed a P25,000 claim against the common carrier. c. On December 31, 2021, Viray has a P20,000 debit balance in accounts payable to a supplier resulting from an advance payment for goods to be manufactured. What amount should be reported as accounts payable on its December 31, 2021 financial statement?

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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3. The balance in Viray Company's accounts payable account at December 31, 2021 was P900,000,
before any necessary year-end adjustment relating to the following:
a. Goods in transit from a vendor to Viray on December 31, 2021. The invoice cost was
P50,000, and the goods were shipped FOB Shipping point on December 29, 2021. The goods
were received on January 4, 2022.
b. Goods shipped FOB shipping point on December 20, 2021 from a vendor to Viray was lost in
transit. The invoice cost was P25,000. On January 5, 2022, Viray filed a P25,000 claim against
the common carrier.
c. On December 31, 2021, Viray has a P20,000 debit balance in accounts payable to a supplier
resulting from an advance payment for goods to be manufactured.
What amount should be reported as accounts payable on its December 31, 2021 financial
statement?

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