Reference no: EM131258145
1. The Sanchez Company records it trade accounts payables net of any cash discounts. At the end of 2016, Sanchez had a balance of $200,000 in its trade accounts payable excluding the following items:
Goods shipped to Sanchez FOB shipping point were in transit on December 31. The invoice price of the goods was $60,000, with a 2% discount allowed for prompt payment.
Goods shipped to Sanchez FOB destination on December 29th arrived on January 2,2017. The invoice price of the goods was $6,000 with a 3% discount allowed for payment within 20 days.
On December 10,2016, Sanchez had recorded a shipment received. The recorded invoice price was $21,560, with a 2% discount allowed if paid within 14 days. At the end of the year payment had not yet been made. At what amount should Sanchez report trade account payables on its December 31,2016 balance sheet?
2. Which of the following dividends are not considered current liabilities when declared?
A. Property dividends
B. Stock dividends
C. Scrip dividends
D. Cash dividends
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