Question 41
On December 31, 2021, Apollo Company has accounts payable of P1,000,000 before adjustments of the following:
1. Checks drawn and recorded but not yet delivered to the payees, P24,000.
2. Postdated checks drawn, recorded and delivered to the payees, P10,000.
3. Goods shipped FOB Destination; freight collect were received on December 30, 2021. The invoice cost was recorded as part of the accounts payable on the date of receipt or the goods and related freight of P10,000 was charged to an expense account.
4. Good shipped FOB Shipping Point, freight prepaid by the vendor on December 28, 2021 was recorded at invoice cost at shipment date. The invoice cost is P28,000 while the freight cost is P5,000.
What amount should Apollo Company report as trade accounts payable on December 31, 2021?
A) P950,000
B) P1,050,000
C) P970,000
D) P1,030,000