What amount should Lovely report as total current liabilities in its December 31, 2013 balance sheet?
What amount should Lovely report as total current liabilities in its December 31, 2013 balance sheet?
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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Transcribed Image Text:1. Lovely Corporation's current liabilities at December 31, 2013 totalled P1,500,000 before any
necessary year-end adjustment relating to the following transactions:
On December 23, 2013, a vendor authorized Lovely to return for full credit, merchandise
shipped and billed at P45,000 on December 09, 2013. Lovely shipped the returned items on
December 29, 2013. A P45,000 credit memo was received and recorded by Lovely on
January 02, 2014.
During December 2013, Lovely received P75,000 from Pretty, a customer, as an advance
payment for a handicraft that Lovely will make to Pretty's specifications. From this
transaction, Lovely has a P75,000 credit balance in its accounts receivable from Pretty at
December 31, 20oio.
What amount should Lovely report as total current liabilities in its December 31, 2013 balance
sheet?
a. P1,455,000
b. P1,470,000
C. P1,530,000
d. P1,575,000
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