ABC Company is preparing its financial statement for the year ended December 31, 2020. Accounts Payable...

 

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ABC Company is preparing its financial statement for the year ended December 31, 2020. Accounts Payable amounted to P 1,200,000 before any necessary year-end adjustments related to the following: At December 31, 2020, ABC Company has P200,000 debit balance in its accounts payable to DEF, a supplier, resulting from a P 200,000 advance payment for goods to be manufactured to ABC's specifications. Checks in the amount of P300,000 were written to vendors and recorded on December 29, 2020. The checks were picked up on January 5, 2021. Checks in the amount of P 150,000 were written to vendors and recorded on December 30, 2020. The checks were received by the vendors on December 31, 2020. What amount should ABC Company report as accounts payable in its December 31, 2019 balance sheet? ABC Company is preparing its financial statement for the year ended December 31, 2020. Accounts Payable amounted to P 1,200,000 before any necessary year-end adjustments related to the following: At December 31, 2020, ABC Company has P200,000 debit balance in its accounts payable to DEF, a supplier, resulting from a P 200,000 advance payment for goods to be manufactured to ABC's specifications. Checks in the amount of P300,000 were written to vendors and recorded on December 29, 2020. The checks were picked up on January 5, 2021. Checks in the amount of P 150,000 were written to vendors and recorded on December 30, 2020. The checks were received by the vendors on December 31, 2020. What amount should ABC Company report as accounts payable in its December 31, 2019 balance sheet?

Answer rating: 100% (QA)

To determine the amount ABC Company should report as accounts payable in its December 31 2020 balanc... View the full answer