Question $11$

$\frac{0}{9\mathrm{.}09}$ points

UMPI Corp.$\text{'}$s A$/$P a at $12/31/17,$ totaled $$800,000$ before an adjusting year end entries are made relating

to the following transactions:

On December $27,2017,$ UMPI wrote and recorded checks to creditors totaling $$450,000$ causing it

to create an overdraft of $$50,000($upon checks clearing$)$ in UMPI's bank account at December $31,$

The checks were mailed out on January $10,2018.$ They wanted to hold the checks until after

year end because they knew there wasn't enough money in the account to cover them.

On December $28,2017,$ UMPI purchased and received goods for $$145,500,$ terms $2/10,$ n$/30.$ UMPI

records purchases and accounts payable at net amounts. The invoice was recorded and paid January

$3,2018.$

Goods shipped f$.$o$.$b$.$ destination on December $20,2017$ from a vendor to UMPI were received

January $2,2018.$ The invoice cost was $$75,000.$