41.Toto Company’s accounts payable balance at December 31, 2020 was P8,000,000 before considering the following data:  ∙ Goods shipped to Toto FOB shipping point on December 15, 2020 were lost in transit. The invoice cost of P500,000 was not recorded by Baggao. On January 15, 2021, Toto filed a P500,000 claim against the common carrier.  ∙ On December 30, 2020, a vendor authorized Toto to

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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41.Toto Company’s accounts payable balance at December 31, 2020 was P8,000,000 before considering the following data: 

∙ Goods shipped to Toto FOB shipping point on December 15, 2020 were lost in transit. The invoice cost of P500,000 was not recorded by Baggao. On January 15, 2021, Toto filed a P500,000 claim against the common carrier. 

∙ On December 30, 2020, a vendor authorized Toto to return for full credit goods shipped and billed at P200,000 on December 15, 2020. The returned goods were shipped by Toto on December 31, 2020. A P200,000 credit memo was received and recorded on January 5, 2021. 

  1. What should Toto report as accounts payable on December 31, 2020?
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