Delaware Corp

Delaware Corp.'s accounts payable at December 31, 2020, totalled $450,000 before any necessary year-end adjustments relating to the following:
1) On December 27, 2020, Delaware wrote and recorded cheques to creditors totalling $175,000 causing an overdraft of $100,000 in Delaware's bank account at December 31, 2020. The cheques were mailed out on January 10, 2021.
2) On December 28, 2020, Delaware purchased and received goods for $100,000, terms 2/10, n/30. Delaware records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3, 2021.
3) Goods shipped FOB destination on December 20, 2020 from a vendor were received on January 2, 2021. The invoice cost was $65,000.
At December 31, 2020, what amount should Delaware report as total accounts payable?

A) $550,000
B) $575,000
C) $723,000
D) $755,500

Correct Answer:

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