What is the correct amount of accounts payable? Delish Company is a wholesale distributor of automotive replacement parts. Initial amounts taken from accounting records on December 31, 2020 are as follows: Inventory on December 31 based on physical count Accounts payable Sales A Parts held on consignment from another entity to Delish, the consignee, amounting to P165 000, were included in the physical count on December 31, 2020,and in accounts payable on December 31, 2020. B. P20 000 of parts which were purchased and paid for in December 2020, were sold in the last week of 2020 and appropriately recorded as sales of P28 000. The parts were included in the physical count on December 31, 2020 because the parts were on the loading dock waiting to be picked up by the customer C Parts in transit on December 31, 2020, shipped FOB shipping point on December 28, 2020, amounted to P34 000. The customers received the parts on lanuary 6, 2021. Sales of P40 000 to the customers for the parts were recorded by Delish on lanuary 2, 2021. 1250 000 1 000 000 9 000 000 D. Retailers were holding P210 000 at cost and P250 000 at retail, on good from consignment from Delish, at their stores on December 31, 2020. E. Goods were in transit from a vendor to Delish on December 31, 2020. The cost of goods was P25 000. the goods were shipped FO8 shipping point on December 29, 2020.
What is the correct amount of accounts payable? Delish Company is a wholesale distributor of automotive replacement parts. Initial amounts taken from accounting records on December 31, 2020 are as follows: Inventory on December 31 based on physical count Accounts payable Sales A Parts held on consignment from another entity to Delish, the consignee, amounting to P165 000, were included in the physical count on December 31, 2020,and in accounts payable on December 31, 2020. B. P20 000 of parts which were purchased and paid for in December 2020, were sold in the last week of 2020 and appropriately recorded as sales of P28 000. The parts were included in the physical count on December 31, 2020 because the parts were on the loading dock waiting to be picked up by the customer C Parts in transit on December 31, 2020, shipped FOB shipping point on December 28, 2020, amounted to P34 000. The customers received the parts on lanuary 6, 2021. Sales of P40 000 to the customers for the parts were recorded by Delish on lanuary 2, 2021. 1250 000 1 000 000 9 000 000 D. Retailers were holding P210 000 at cost and P250 000 at retail, on good from consignment from Delish, at their stores on December 31, 2020. E. Goods were in transit from a vendor to Delish on December 31, 2020. The cost of goods was P25 000. the goods were shipped FO8 shipping point on December 29, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:What is the correct amount of accounts payable?
Delish Company is a wholesale distributor of automotive replacement parts. Initial amounts taken
from accounting records on December 31, 2020 are as fallows:
Inventory on December 31 based on physical count
Accounts payable
Sales
1 250 000
1 000 000
9 000 000
A. Parts held on consignment from another entity to Delish, the consignee, amounting to P165
000, were included in the physical count on December 31, 2020,and In accounts payable on
December 31, 2020.
B. P20 000 of parts which were purchased and paid for in December 2020, were sold in the last
week of 2020 and appropriately recorded as sales of P28 000. The parts were included in the
physical count on December 31, 2020 because the parts were on the loading dock waiting to be
picked up by the customer,
C. Parts in transit an December 31, 2020, shipped FOB shipping point on December 28, 2020,
amounted to P34 000. The customers received the parts on lanuary 6, 2021. Sales of P40 00 to
the customers for the parts were recarded by Delish an January 2, 2021.
D. Retailers were halding P210 000 at cost and P250 000 at retail, on good from consignment from
Delish, at their stores on December 31, 2020.
E. Goods were in transit from a vendor to Delish on December 31, 2020. The cost of goods was
P25 000. the goods were shipped FO8 shipping point on December 29, 2020.
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