Black Company reported accounts payable on December 31, 2020 P4,500,000 before any necessary year-end adjustment relating to the following transactions - On December 27, 2020, Black wrote and recorded checks to creditors totaling P2,000,000 causing a overdraftofP500,000inBlack'sbankaccountonDecember31,2020.ThechecksweremailedonJanuary 10, 2021. - OnDecember28,2020,BlackpurchasedandreceivedgoodsforP750,000,terms2/10,n/30.Blackrecords purchases and accounts payable at net amount. The invoice was recorded and paid January 3,2021. - Goods shipped F.O.B. destination on December 20, 2020 from a vendor to Black were received January 2, 2021. The invoice cost wasP325,000. On December 31, 2020, what amount should be reported as accountspayable? a. 7,575,000 b. 7,250,000 c. 7,235,000 d. 7,553,500

Black Company reported accounts payable on December 31, 2020 P4,500,000 before any necessary year-end adjustment relating to the following transactions - On December 27, 2020, Black wrote and recorded checks to creditors totaling P2,000,000 causing a overdraftofP500,000inBlack'sbankaccountonDecember31,2020.ThechecksweremailedonJanuary 10, 2021. - OnDecember28,2020,BlackpurchasedandreceivedgoodsforP750,000,terms2/10,n/30.Blackrecords purchases and accounts payable at net amount. The invoice was recorded and paid January 3,2021. - Goods shipped F.O.B. destination on December 20, 2020 from a vendor to Black were received January 2, 2021. The invoice cost wasP325,000. On December 31, 2020, what amount should be reported as accountspayable? a. 7,575,000 b. 7,250,000 c. 7,235,000 d. 7,553,500

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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