The Cheesecake Factory Incorporated (NASDAQ: CAKE) operates two bakeries in the United States where it makes over 70 desserts for its own restaurants. In addition, the Cheesecake Factory bakeries sell selected desserts to a variety of foodservice operators and retailers, including Sam’s Club, Walmart, Target, BJ’s Wholesale Club, and Barnes & Noble Cafés. The Cheesecake Factory has accounts receivable on its financial statements. The primary source of its accounts receivable is its sales to bakery customers.

Requirements

1. Identify the financial statement where The Cheesecake Factory accounts receivable would be found. What is the balance of The Cheesecake Factory’s accounts receivable as of January 3, 2017? Did its accounts receivable balance increase or decrease since its 2015 fiscal year?

2. Assume that BJ’s Wholesale Club places an order with The Cheesecake Factory bakery for 1,000 Cheesecake Factory Original Cheesecakes on account (FOB shipping point) for a total cost of $7,500. No discount was offered for early payment. Write the journal entry, if any, which would be made on each of the following dates by The Cheesecake Factory (ignore the cost of sales journal entry here):

a. Order date

b. Shipment date

c. Payment date

3. How will The Cheesecake Factory’s assets, liabilities, and equity be impacted on each of the previous dates related to BJ’s Wholesale Club order?