Reference no: EM132539494

Problem 1: Diversified Company sells perishable electronic products that are shipped in reusable containers.

Customers pay a deposit for each container. The deposit is equal to the container cost. Customers receive a refund when the container is returned. During the current year, deposits collected on containers shipped amounted to P700,000. Deposits are forfeited if containers are not returned in 18 months. Containers held by customers at the beginning of the year totaled P330,000. During the current year, an amount of P410,000 was refunded and deposits of P25,000 were forfeited.

What is the liability for refundable deposit at year end?

Problem 2: Bloy Company pays all salaried employees on a biweekly basis. Overtime pay however is paid in the next biweekly period. The entity accrues salaries expenses only at the December 31 year-end.

Data relating to salaries earned in December 2018 are:

1. Last payroll was paid on December 26, 2018 for the 2-week period ended December 26, 2018;
2. Overtime pay earned for the 2-week period ended December 26, 2018 was P420,000;
3. Remaining work days in 2018 were December 29, 30 and 31 on which days there was no overtime;
4. The recurring biweekly salaries totaled P7,500,000.

Assuming a 5-day work week, what amount should be recorded as accrued salaries payable on December 31, 2019?