Received bills totaling $1320 for grand opening/fourth of July party. The bill from party rentals for the promotional handouts, balloons, decorations, and prizes was $620, and the newspaper advertising bills from the city star were $700. How to write in out in journ

Received bills totaling $1320 for grand opening/fourth of July party. The bill from party rentals for the promotional handouts, balloons, decorations, and prizes was $620, and the newspaper advertising bills from the city star were $700. How to write in out in journ

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter7: Accounting For Cash

Section: Chapter Questions

Problem 4CE

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Blue, Inc., sells playground equipment to schools and municipalities. It mails invoices at the end of each month for all goods shipped during that month; credit terms are net 30 days. Sales and accounts receivable data for 2017, 2018, and 2019 follow: Years Ending December 31, 2017: Sales: $1,785,980 Accounts Receivable at year-end: $220,189 2018: Sales: $1,839,559 Accounts Receivable at year-end: $227,896 2019: Sales: $1,986,724 Accounts Receivable at year-end: $267,094 Required: 1. Calculate the rates of increase in sales and in receviables during 2018 and 2019. 2. Do your calculations indicate any potential problems with Blue's receivables? 3. If so, suggest a possible explanation for your findings and indicate what action, if any, would then be needed to bring Blue's financial statements into conformity with GAAP.