Party Warehouse inc. rents a wide variety of products (e.2., tables, chairs, tents) for special...
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Party Warehouse inc. rents a wide variety of products (e.2., tables, chairs, tents) for special events. Upon rental, Party Warehouse tequites a deposit which is forteited it the equipment is not returned at the end of the rental period. Deposits charged ase twice the cost of the equipment, and Party Warehouse keops the equipment in its accounting records until deposat are forleited. On Apeli 5, a customer rented varicus products for an event to be held on April 8, and Party Warohouse collected a \$20,000 deposit. The products wore returned on April 10. Required: 1. Prepare the entries to recond the roceipt of the deposit and rofund of the deposit at the end of the rental period: 2. Assume that the customer only retums 800 of the equipment on April ta Prepare the entries to record the forfenture of the deposit. Chart of Accounts 1. Prepare the entries to record the receipt of the deposit and refund of the deposit at the end of the rental period. General Joumal instructions 2. Assume that the customer only retums 80% of the equipment on April 10. Prepare the entries to record the forfeiture of the deposit. General Joumal instructions
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