4) Laurenz Company is preparing financial statements for the year ended December 31, 2018. Accounts payable...

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4) Laurenz Company is preparing financial statements for the year ended December 31, 2018. Accounts payable amounted to P3,600,000 before any necessary year-end adjustment related to the following: • On December 31, 2018, the entity has a P500,000 debit balance in accounts payable to a supplier, resulting from advance payment for goods to be manufactured. • Checks in the amount of P1,000,000 were written to vendors and recorded on December 20, 2018. The checks were mailed on January 5, 2019. What amount should be reported as accounts payable on December 31, 2018? C. 3,100,000 A. 5,100,000 B. 4,100,000 D. 2,100,000 4) Laurenz Company is preparing financial statements for the year ended December 31, 2018. Accounts payable amounted to P3,600,000 before any necessary year-end adjustment related to the following: • On December 31, 2018, the entity has a P500,000 debit balance in accounts payable to a supplier, resulting from advance payment for goods to be manufactured. • Checks in the amount of P1,000,000 were written to vendors and recorded on December 20, 2018. The checks were mailed on January 5, 2019. What amount should be reported as accounts payable on December 31, 2018? C. 3,100,000 A. 5,100,000 B. 4,100,000 D. 2,100,000

Answer rating: 100% (QA)

a The amount P500000 debited would be added back to the Accounts Payable ... View the full answer