Reference no: EM132578446

Washington Company's accounts payable at December 31, 2015 totaled P1, 000,000 before any necessary year-end adjustments relating to the following transactions and information:

1. On December 27, 2015, Washington wrote and issued checks to creditors totaling P350, 000. The issuance of the checks was recorded on January 3, 2016.
2. On December 28, 2015, Washington purchased and received goods for P150, 000, terms 2/10, n/30. Washington records purchases and accounts payable at net amounts. The invoice was recorded and paid January 3, 2016.
3. Goods shipped F.O.B destination on December 20, 2015 from a vendor to Washington was received January 2, 2016. The invoice cost was P65, 000. The purchase was recorded on January 2, 2016.
4. Goods costing P120, 000 were purchased from NYC Trading. The goods were shipped by NYC on December 28, 2015, F.O.B shipping point. The goods, together with the invoice, were received by Washington on January 4, 2016.
5. The accounts payable general ledger balance of P1, 000,000 is net of P80, 000 debit balance in one supplier's account representing deposit on goods to be delivered in February 2016.

REQUIRED:

Question 1: What amount should Washington Company report as total accounts payable at December 31, 2015?