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:

Required:
1. Calculate the rates of increase in sales and in receivables 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.

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Years Ending December 31, 2018 $1,839,559 2017 2019 Sales Accounts receivable at year-end $1,785,980 220,189 $1,986,724 267,094 227,896