Reference no: EM132974244

Washington Company's accounts payable on December 31, 2021 totaled P1,000,000 before any necessary yearend adjustments relating to the following transactions and information:

• On December 27, 2021, Washington wrote and issued checks to creditors totaling P350,000. The issuance of the checks was recorded on January 3, 2022.
• On December 28, 2021, 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, 2022.
• Goods shipped on December 20, 2021 from a vendor to Washington under terms FOB Destination were received on January 2, 2022. The invoice cost was P65,000. The purchase was recorded on January 2, 2022.
• Goods costing P120,000 were purchased from NYC Trading. The goods were shipped on December 28, 2021, terms: FOB Shipping point. On January 4, 2022, Washington received the goods together with the invoice.
• 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 2022.

Required:

Question 1: What amount should Washington Company report as total accounts payable as of December 31, 2021?