Furtastic manufactures imitation fur garments. On June 1, 2024, Furtastic made a sale to Willett's Department Store under terms that require Willett to pay $245,000 to Furtastic on June 30, 2024. In a separate transaction on June 15, 2024, Furtastic purchased brand advertising services from Willett for $31,000. The fair value of those advertising services is $14,500. Furtastic expects that 2% of all sales will prove uncollectible. Required: Prepare the journal entry to record Furtastic's sale on June 1, 2024. Prepare the journal entry to record Furtastic's purchase of advertising services from Willett on June 15, 2024. Assume all of the advertising services are delivered on June 15, 2024. Prepare the journal entry to record Furtastic's receipt of $245,000 from Willett on June 30, 2024.
Furtastic manufactures imitation fur garments. On June 1, 2024, Furtastic made a sale to Willett's Department Store under terms that require Willett to pay $245,000 to Furtastic on June 30, 2024. In a separate transaction on June 15, 2024, Furtastic purchased brand advertising services from Willett for $31,000. The fair value of those advertising services is $14,500. Furtastic expects that 2% of all sales will prove uncollectible. Required: Prepare the journal entry to record Furtastic's sale on June 1, 2024. Prepare the journal entry to record Furtastic's purchase of advertising services from Willett on June 15, 2024. Assume all of the advertising services are delivered on June 15, 2024. Prepare the journal entry to record Furtastic's receipt of $245,000 from Willett on June 30, 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Furtastic manufactures imitation fur garments. On June 1, 2024, Furtastic made a sale to Willett's
Department Store under terms that require Willett to pay $245,000 to Furtastic on June 30, 2024.
In a separate transaction on June 15, 2024, Furtastic purchased brand advertising services from
Willett for $31,000. The fair value of those advertising services is $14,500. Furtastic expects that 2%
of all sales will prove uncollectible.
Required: Prepare the journal entry to record Furtastic's sale on June 1, 2024.
Prepare the journal entry to record Furtastic's purchase of advertising services from Willett on June
15, 2024. Assume all of the advertising services are delivered on June 15, 2024.
Prepare the journal entry to record Furtastic's receipt of $245,000 from Willett on June 30, 2024.
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