The balance in Hansel Company's accounts payable account at December 31, 2020, was P1,100,000 before considering the following information: Goods shipped FOB shipping point on December 20, 2020, from a vendor to Hansel were lost in transit. The invoice cost of P20,000 was not recorded by Hansel. On January 6, 2021, Hansel filed a P20,000 claim against the common carrier. On December 27, 2020, a vendor authorized Hansel to return, for full credit, goods shipped and billed at P35,000 on December 2, 2020. The returned goods were shipped by Hansel on December 27, 2020. A P35,000 credit memo was received and recorded by Hansel on January 6, 2021. What amount should Hansel report as accounts payable in its December 31, 2020, statement of financial position?

Group of answer choices

P1,115,000

P1,065,000

P1,085,000

P1,120,000