Question
Gear Co.'s accounts payable balance at December 31, 2015 was P1,500,000 before considering the following transactions: Goods were in transit from a vendor to Gear
Gear Co.'s accounts payable balance at December 31, 2015 was P1,500,000 before considering the following transactions:
- Goods were in transit from a vendor to Gear on December 31, 2015. The invoice price was P70,000, and the goods were shipped f.o.b. shipping point on December 29, 2015. The goods were received on January 4, 2016
- Goods shipped to Gear, f.o.b. shipping point on December 20, 2015, from a vendor were lost in transit. The invoice price was P50,000. On January 5, 2016, Gear filed a P50,000 claim against the common carrier.
In its December 31, 2015 balance sheet, Gear should report accounts payable of?
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
