The balance in Reed Company's accounts payable account at December 31, 2019 was P4,900,000 before the...

Transcribed Image Text:

The balance in Reed Company's accounts payable account at December 31, 2019 was P4,900,000 before the following information was considered: Goods shipped F.O.B. destinations on December 21, 2019 from a vendor to Reed were lost in transit. The invoice cost of P180,000 was not recorded by Reed. On December 28, 2019, Reed notified the vendors of the lost shipment. Goods were in transit from a vendor to Reed on December 31, 2019. The invoice cost was P240,000 and the goods were shipped F.O.B. shipping point on December 28, 2019. Reed received the goods on January 6, 2020. 3. What amount should Reed report as accounts payable in its December 31, 2019 balance sheet? a. 5,320.000 b. 5,140,000 c. 5,080,000 d. 4,900,000 The balance in Reed Company's accounts payable account at December 31, 2019 was P4,900,000 before the following information was considered: Goods shipped F.O.B. destinations on December 21, 2019 from a vendor to Reed were lost in transit. The invoice cost of P180,000 was not recorded by Reed. On December 28, 2019, Reed notified the vendors of the lost shipment. Goods were in transit from a vendor to Reed on December 31, 2019. The invoice cost was P240,000 and the goods were shipped F.O.B. shipping point on December 28, 2019. Reed received the goods on January 6, 2020. 3. What amount should Reed report as accounts payable in its December 31, 2019 balance sheet? a. 5,320.000 b. 5,140,000 c. 5,080,000 d. 4,900,000

Answer rating: 100% (QA)

Answer Optionb 5140000 Reason FOB desination refers to a term that says that goods ownership will be ... View the full answer