Reference no: EM132974220

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:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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?