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 $220,000 to Furtastic on June 30, 2024. In a separate transaction on June 15, 2024, Furtastic purchased brand advertising services from Willett for $26,000. The fair value of those advertising services is $12,000. Furtastic expects that 3% of all sales will prove uncollectible. Required: 1. Prepare the journal entry to record Furtastic's sale on June 1, 2024. 2. 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. 3. Prepare the journal entry to record Furtastic's receipt of $220,000 from Willett on June 30, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 Record Furtastic's sale on June 1, 2024. Note: Enter debits before credits. General Journal Date June 01, 2024 Accounts receivable Sales revenue Record entry Clear entry Debit Credit 220,000 220,000 View general journal >
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 $220,000 to Furtastic on June 30, 2024. In a separate transaction on June 15, 2024, Furtastic purchased brand advertising services from Willett for $26,000. The fair value of those advertising services is $12,000. Furtastic expects that 3% of all sales will prove uncollectible. Required: 1. Prepare the journal entry to record Furtastic's sale on June 1, 2024. 2. 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. 3. Prepare the journal entry to record Furtastic's receipt of $220,000 from Willett on June 30, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 Record Furtastic's sale on June 1, 2024. Note: Enter debits before credits. General Journal Date June 01, 2024 Accounts receivable Sales revenue Record entry Clear entry Debit Credit 220,000 220,000 View general journal >
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 7DQ
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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 $220,000 to Furtastic on June 30, 2024. In a separate transaction on June 15,
2024, Furtastic purchased brand advertising services from Willett for $26,000. The fair value of those advertising
services is $12,000. Furtastic expects that 3% of all sales will prove uncollectible.
Required:
1. Prepare the journal entry to record Furtastic's sale on June 1, 2024.
2. 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.
3. Prepare the journal entry to record Furtastic's receipt of $220,000 from Willett on June 30, 2024.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
<
1
2 3
Record Furtastic's sale on June 1, 2024.
Note: Enter debits before credits.
General Journal
Date
June 01,
2024
Accounts receivable
Sales revenue
Record entry
Clear entry
Debit Credit
220,000
220,000
View general journal
>
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