The balance in Wellstocked Company's accounts payable account on December 31 . 2014, was $1,225,000 before the following information was considered: • Goods shipped FOB destination on December 21, 2014, from a vendor to Wellstocked were lost in transit. The invoice cost of $45,000 was not recorded by Wellstocked. On December 28, 2014, Wellstocked notified the vendor of the lost shipment. •
Goods were in transit from a vendor to Wellstocked on December 31 . 2014 . The invoice cost was $60,000, and the goods were shipped FOB shipping point on December 28, 2014 . Wellstocked received the goods on January 6, 2015. What amount should Wellstocked report as accounts payable in its December 31 . 2014, balance sheet?
a. $1,330,000
b. $1,285,000
c. $1,270,000
d. $1,225,000
B
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