What amount should Japan Company report as accounts payable in its December 31, 2020 statement of financial position?
The accounts payable balance of Japan Company at December 31, 2020 was P590,000 before the year-end adjustments relating to the following information:
a. Upon receipt of the invoice on December 28, 2020 for goods costing P30,000, the accounting staff of Japan Company recorded the purchase in the accounts. It was determined that the goods were shipped FOB destination on December 27, 2020 and were received by Japan Company on January 2, 2021.
b. Goods with an invoice cost of P25,000 which were shipped FOB shipping point on December 23, 2020 from a vendor to Japan Company were lost in transit. On January 4, 2021, Japan Company filed a P25,000 claim against the transportation company.
c. Goods costing P9,000 were shipped FOB shipping point from a vendor to Japan Company. Because the vendor’s invoice and the goods were received on January 3, 2021, the accounting staff did not include the goods in its December 31, 2020 inventory nor was the purchase recorded in the accounts in 2020.
What amount should Japan Company report as accounts payable in its December 31, 2020
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