1. On December 1, $240,000 was received for a service contract to be performed from December 1 through November

30.

Record the journal entry on December 1 for the advance payment.

2. Zoey Bella Corp. has a payroll of $80,000 for a five-day workweek. Its employees are paid each Friday for the five day

workweek.

Prepare the adjusting entry on December 31 assuming the year ends on Wednesday.

3. Bargain Wholesalers sells pet supplies to retailers including Pet World Supplies. Bargain Wholesalers uses a perpetual

inventory system.

May 4, Bargain Wholesalers sells inventory to Pet World Supplies for $33,000 with terms 1/10, n/30. The cost of the

merchandise is $23,020.

May 13, Bargain Wholesalers receives a check from Pet World Supplies paying the balance due.

Record the journal entry on May 13.