As of July 31, 2005 and August 1, 2004, Campbell's books indicated that it had accounts receivable totaling $553 million and $529 million, respectively. However, the company reported the following balances in the statement of financial position (Balance Sheet).

Explain why the amounts reported in the statement of situation (balance sheet) are less than those that appear in the accounting books of the company.

Consolidated Balance Sheets (millions, except per share amounts) Current Assets Cash and cash equivalents Accounts receivable Inventories Other current assets Total current assets July 31, 2005 $ 40 509 782 181 1.512 August 1, 2004 $32 490 782 164 1.468