Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounts Payable The balance in Ashwood Company's Accounts Payable account at December 31, Year 1, was $1,200,000 before any necessary year-end adjustment relating to the

Accounts Payable The balance in Ashwood Company's Accounts Payable account at December 31, Year 1, 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, Year 1. The invoice cost was $85,000, and the goods were shipped FOB shipping point on December 29. The goods were received on January 2, Year 2. Goods shipped FOB shipping point on December 20, Year 1, from a vendor to Ashwood were lost in transit. The invoice cost was $40,000. On January 5, Year 2, Ashwood filed a $40,000 claim against the common carrier. Goods shipped FOB destination on December 22, Year 1, from a vendor to Ashwood were received on January 6, Year 2. The invoice cost was $20,000. What amount should Ashwood report as accounts payable on its December 31, Year 1, balance sheet?

a. $1,260,000

b. $1,325,000

c. $1,345,000

d. $1,285,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For School Administrators Tools For School

Authors: Ronald E. Everett, Donald R. Johnson, Bernard W. Madden

3rd Edition

1610487710, 978-1610487719

More Books

Students also viewed these Accounting questions

Question

=+7. For the cost matrix of Exercise 3,

Answered: 1 week ago