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is this correct problem 6 ( 10 points) The balance in Sky Company's Accounts Payable account at December 31, 2025 was $980,000. The following items
is this correct
problem 6 ( 10 points) The balance in Sky Company's Accounts Payable account at December 31, 2025 was $980,000. The following items were discovered that may or may not affect this balance. Describe and calculate what would have been the effect of each of these on the Accounts Payable balance? a) Goods were in transit to Sky from a vendor on December 31,2025 . The invoice cost was $40,000. The goods were shipped F.O.B, shipping point on December 29, 2025 and were received on January 4, 2026. Now) Hecourts Pathle 980,000+40,000=1,020,000 balance b) Goods shipped F.O.B. destination on December 21, 2025 from a vendor to Sky were received on January 6,2026 . The invoice cost was $25,000. No dranges in accounts payable. Q3 destination of 25,000 is not applied c) On December 27,2025 , Sky wrote and recorded checks to creditors totaling $30,000 that were mailed on January 10, 2026. Accounts payable is decreased from 980,000 to 950,000. Part a happened after the recording of this transuch so we ignore it for part c. d) In Sky's December 31, 2025 balance sheet, the Accounts Payable balance should be what amountStep by Step Solution
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