(1) John Foristall indicates that ShoeBuy’s receivables are primarily from credit card sales. Discuss how the use of credit card sales impacts cash flows relative to using open trade accounts Receivable. 

(2) ShoeBuy used reversing entries for events such as accrued payroll at year-end. How would the Company’s accounting be affected if reversing entries were not made for payroll?

Answer rating: 100% (QA)

1 Credit sales or Account receivables are sales made without an actual inflow of cash but a mere a p... View the full answer