Furtastic manufactures imitation fur garments. On June 1, 2016, Furtastic made a
ID: 2450676 • Letter: F
Question
Furtastic manufactures imitation fur garments. On June 1, 2016, Furtastic made a sale to Willett's Department Store under terms that require Willett to pay $150,000 to Furtastic on June 30, 2016. In a separate transaction on June 15, 2016, Furtastic purchased brand advertising services from Willett for $12,000. The fair value of those advertising services is $5,000. Furtastic expects that 3% of all sales will prove uncollectible. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Explanation / Answer
Solution:
Journal Entry to record Furtastic's Sale
Accounts Receivables $ 150,000
Sales $ 150,000
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