Furtastic manufactures imitation fur garments. On June 1, 2018,Furtastic made a sale to Willett’s Department Store under termsthat require Willett to pay $170,000 to Furtastic on June 30, 2018.In a separate transaction on June 15, 2018, Furtastic purchasedbrand advertising services from Willett for $16,000. The fair valueof those advertising services is $7,000. Furtastic expects that 2%of all sales will prove uncollectible.
Required:
1. to 3. Prepare the journal entries to record thetransactions above. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.)
1. Record the Furtastic’s sale on June 1, 2018.
2. Record the Furtastic’s purchase of advertising services fromWillett on June 15, 2018. Assume all of the advertising servicesare delivered on June 15, 2018.
3. Record the Furtastic’s receipt of $170,000 from Willett onJune 30, 2018.
