3) The balance in Viray Company's accounts payable account at December 31, 2021 was P900,000, before any necessary year-end adjustment relating to the following: a

Subject:AccountingPrice:9.82 Bought3

Share With

3) The balance in Viray Company's accounts payable account at December 31, 2021 was P900,000, before any necessary year-end adjustment relating to the following: a. Goods in transit from a vendor to Viray on December 31, 2021. The invoice cost was P50,000, and the goods were shipped FOB Shipping point on December 29, 2021. The goods were received on January 4, 2022. b. Goods shipped FOB shipping point on December 20, 2021 from a vendor to Viray was lost in transit. The invoice cost was P25,000. On January 5, 2022, Viray filed a P25,000 claim against the common carrier. c. On December 31, 2021, Viray has a P20,000 debit balance in accounts payable to a supplier resulting from an advance payment for goods to be manufactured. What amount should be reported as accounts payable on its December 31, 2021 financial statement? 4. During 2021, Baron Company introduced a new line of machines that carry a 3-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2.5% of sales in the year of sale, 4.5% in the year after sale, and 7% in the second year after sale. Sales and actual warranty expenditure for the first 3-year period were as follows: Year Sales Actual Warranty Expenditures 2019 P2,000,000 P30,000 2020 5,000,000 150,000 2021 7,000,000 420,000 P14,000,000 P600,000 What amount should Baron report as warranty liability at December 31, 2021?