Tsing Company requires advance payments with special orders for machinery constructed to customer specifications. These advances are nonrefundable. Information for the current year is as follows: Advances from customers - January 1 Advances received with orders P 1,180,000 Advances applied to orders shipped 1,840,000 1,640,000 500,000 Advances applied to orders canceled What amount should be reported as current liability for advances from customers at year-end?

Tsing Company requires advance payments with special orders for machinery constructed to customer specifications. These advances are nonrefundable. Information for the current year is as follows: Advances from customers - January 1 Advances received with orders P 1,180,000 Advances applied to orders shipped 1,840,000 1,640,000 500,000 Advances applied to orders canceled What amount should be reported as current liability for advances from customers at year-end?

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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The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
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