AP1-21 introduced Michelle Fontaine and her outdoor adventure company, Call of the Wild Ltd. At the end

Question:

AP1-21 introduced Michelle Fontaine and her outdoor adventure company, Call of the Wild Ltd. At the end of July, the following items were in her records:

a. Identify each of the items in her records as an asset, liability, or shareholders€™ equity item.
b. Prepare a statement of financial position for Call of the Wild Ltd. at the end of July.
c. Does Michelle Fontaine have any inventory? Explain.
d. Michelle Fontaine does not have accounts receivable in her records. Explain why it is unlikely that she will record accounts receivable. Under what business circumstances would it be necessary for her to record accounts receivable?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...