Presented below are a number of business transactions that occurred during the current year for Chita, Inc.

1. An order for \(\$ 70,000\) has been received from a customer for products on hand. This order is to be shipped on January 9 next year. The following entry was made:

\section*{Instructions}
In each of the situations above, discuss the appropriateness of the journal entries in terms of generally accepted accounting principles.
Identify accounting assumptions, principles, and constraints.
(SO 4, 5, 6)
Prepare a classified balance sheet and analyze financial position (SO 7)

Transcribed Image Text:

Accounts Receivable Sales 70,000 70,000