Reference no: EM132774094
Question - Dole Corp.'s accounts payable at December 31, 2020, totaled $900,000 before any necessary year-end adjustments relating to the following transactions:
On December 27, 2020, Dole wrote and recorded checks to creditors totaling $350,000 causing an overdraft of $100,000 in Dole's bank account at December 31, 2020. The checks were mailed out on January 10, 2021.
On December 28, 2020, Dole purchased and received goods for $150,000, terms 2/10, n/30. Dole records purchases and accounts payable at net amounts. The invoice was recorded and paid January 3, 2021.
Goods shipped f.o.b. destination on December 20, 2020 from a vendor to Dole were received January 2, 2021. The invoice cost was $65,000.
At December 31, 2020, what amount should Dole report as total accounts payable?
a. $1,462,000.
b. $1,397,000.
c. $1,150,000.
d. $1,050,000.
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