Orange Corp.’s accounts payable at December 31, 2021, totaled P800,000 before any necessary year-end adjustments relating to the following transactions: · On December 27, 2021, Orange wrote and recorded checks to creditors totaling P350,000 causing an overdraft of P100,000 in Orange’s bank account at December 31, 2021. The checks were mailed out on January 10, 2022. · On December 28, 2021, Orange purchased and received goods for P150,000, terms 2/10, n/30. Orange records purchases and accounts payable at net amounts. The invoice was recorded and paid January 3, 2022. · Goods purchased on December 20, 2021, shipped f.o.b. destination, were received January 2, 2022. The invoice cost was P65,000. Terms 2/10, 2/30 What was the correct balance of accounts payable at December 31, 2021?
Orange Corp.’s accounts payable at December 31, 2021, totaled P800,000 before any necessary year-end adjustments relating to the following transactions:
· On December 27, 2021, Orange wrote and recorded checks to creditors totaling P350,000 causing an overdraft of P100,000 in Orange’s bank account at December 31, 2021. The checks were mailed out on January 10, 2022.
· On December 28, 2021, Orange purchased and received goods for P150,000, terms 2/10, n/30. Orange records purchases and accounts payable at net amounts. The invoice was recorded and paid January 3, 2022.
· Goods purchased on December 20, 2021, shipped f.o.b. destination, were received January 2, 2022. The invoice cost was P65,000. Terms 2/10, 2/30
What was the correct balance of accounts payable at December 31, 2021?
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