Fatima Corporation’s account payable at December 31, 2022, totaled P900,000 before any necessary year-end adjustments relating to the following transactions:

• On December 27, 2022, Fatima wrote and recorded checks to creditors totaling P350,000 causing an overdraft of P100,000 in Fatima’s bank account at December 31, 2022. The checks were mailed out on January 10, 2023.
• On December 28, 2022, Fatima purchased and received goods for P200,000, terms 2/10, n/30. Fatima records purchases and accounts payable at net amount. The invoice was recorded and paid January 3, 2023.
• Goods shipped FOB destination on December 20, 2022 from a vendor to Fatima were received January 2, 2023. The invoice cost was P65,000.

At December 31, 2022, what amount should Fatima report as total accounts payable?

Choices

1,446,000

1,150,000

1,511,000

1,100,000

Answer rating: 100% (QA)

Answer 1446000 Computation of Total Accounts Payable Unadjusted A... View the full answer