IceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events occurred...
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IceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events occurred between April 1 and June 30 of the current year: April 10 Received an order from Peter's Appliances, a wholesaler, for 10 machines. April 30 Sold 15 machines to Yuri Inc. on credit. May May May May May 1 The purchasing manager of Peter's Appliances visited IceKreme's factory and purchased 12 machines on credit, instead of the 10 machines that were previously ordered. 5 Yuri Inc. paid for the machines purchased on April 30. 7 Sold 2 machines to Cheng Ltd. on credit. 10 Wrote off $13,000 of accounts receivable that were considered uncollectible. These receivables relate to sales made prior to April 1 of the current year. 10 Peter's Appliances paid the amount due to Icekreme. June 30 Recovered $3,500 from the receivables that were written off on May 10. Additional information is as follows: IceKreme sold all machines at $15,000 per unit. All of IceKreme's sales were on credit with terms n/30. IceKreme's records included the following items and their balances as at March 31 of the current year: Accounts receivable $ 80,000 Allowance of doubtful accounts (credit balance) Net sales 20,000 850,000 Required: 1. Prepare the journal entries to record the transactions that occurred from April 1 to June 30 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) IceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events occurred between April 1 and June 30 of the current year: April 10 Received an order from Peter's Appliances, a wholesaler, for 10 machines. April 30 Sold 15 machines to Yuri Inc. on credit. May May May May May 1 The purchasing manager of Peter's Appliances visited IceKreme's factory and purchased 12 machines on credit, instead of the 10 machines that were previously ordered. 5 Yuri Inc. paid for the machines purchased on April 30. 7 Sold 2 machines to Cheng Ltd. on credit. 10 Wrote off $13,000 of accounts receivable that were considered uncollectible. These receivables relate to sales made prior to April 1 of the current year. 10 Peter's Appliances paid the amount due to Icekreme. June 30 Recovered $3,500 from the receivables that were written off on May 10. Additional information is as follows: IceKreme sold all machines at $15,000 per unit. All of IceKreme's sales were on credit with terms n/30. IceKreme's records included the following items and their balances as at March 31 of the current year: Accounts receivable $ 80,000 Allowance of doubtful accounts (credit balance) Net sales 20,000 850,000 Required: 1. Prepare the journal entries to record the transactions that occurred from April 1 to June 30 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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To record the transactions that occurred from April 1 to June 30 of the current year the following j... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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