What amount should be recognized as accounts payable on feb

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Problem 1: On November 30, 2020, Cute Company entered into a commitment to purchase 20,000 ounces of gold on February 28, 2021at a price of P350 per ounce. On December 31, 2020, the market value of gold is P310 per ounce. On February 28, 2021, the price of the gold is P340 per ounce. What amount should be recognized as accounts payable on February 28, 2021?

Group of answer choices

Option 1: 7,000,000

Option 2: 0

Option 3: 6.400,000

Option 4: 6,800,000

Reference no: EM132667167

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