Reference no: EM132791581
Question - James Corporation's current liabilities at December 31, 2020 totaled P1,800,000 before any necessary year-end adjustment relating to the following transactions:
On December 23, 2020, a vendor authorized James to return for full credit, merchandise shipped and billed at P54,000 on December 9, 2020. A P54,000 credit memo was received and recorded by James on January 2, 2021.
During December 2020, James received P90,000 from Red, a customer, as an advance payment for a handicraft that James will make to Red's specifications. From this transaction, James has a P90,000 credit balance in its accounts receivable from Red at December 31, 2020.
What amount should Cherry report as total current liabilities in its December 31, 2020 balance sheet?