Reference no: EM132811941

The balance in Sugawara Company's accounts payable account at December 31, 2018 was P400,000 before any necessary adjustments relating to the following:

1. On December 28, 2018, Sugawara purchased and received goods for P40,000, terms 2/10, n/30. Sugawara records purchases and accounts payable at net amounts.The invoice was recorded and paid January 3, 2019.
2. Goods were in transit to Sugawara from a vendor on December 31, 2018. The invoice cost was P50,000 . The goods were shipped FOB shipping point on December 29, 2018 and were received on January 4, 2019.
3. Goods shipped FOB shipping point on December 21, 2018 from a vendor to Sugawara were received on January 6, 2019. The invoice cost was P25,000.
4. Goods shipped to Sugawara FOB shipping point on December 20, 2018, from a vendor were lost in transit. The invoice price was P20,000. On January 5, 2019, Sugawara filed a P20,000 claim against the common carrier.

Problem 1: In Sugawara's December 31, 2018, statement of financial position, the accounts payable should be