Question
Read the interview of John Foristall on page 135 - John Foristall is executive vice president and chief financial officer of ShoeBuy. John Foristall oversees
Read the interview of John Foristall on page 135 - John Foristall is executive vice president and chief financial officer of ShoeBuy. John Foristall oversees all aspects of corporate finance, including accounting and risk management, as well as other key operational areas including human resources and the companys warehouse operation, which is pivotal for the online retailer. Launched in 2000, ShoeBuy is the worlds largest, most diverse shoe, clothing, and accessories shopping site, with billions of dollars of inventory available for sale.
Discussion questions: (1) John Foristall indicates that ShoeBuys receivables are primarily from credit card sales. Discuss how the use of credit card sales impact 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 Companys accounting be affected if reversing entries were not made for payroll?
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