Complete journal entries + determine bad debt expense based on aging analysis and interpreting ratios

IceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events occurred between April 1 and June 30, 2020: April 10: Received an order from Peter's Appliancen, a wholesaler, for 48 machines. April 30: Sold 72 machines to Yuri Ine. on credit. May 1. The purchasing manager of Peter's Appliances visited Icekrone'e factory and purchased 52 machines on credit, instead of the 48 machines that were previously ordered. May 51 Yuri Ine. paid for the machines purchased on April 30. May 71 Sold 20 machines to Cheng Ltd. on credit. May 10: Wrote oft $13,000 of accounts receivable that were considered uncollectible. These receivables relate to salen made prior to April 1, 2020. May 151 Peter's Appliances returned three defective machines and paid the amount due. June 1. Received $128,000 from Cheng Ltd. on account. June 30: Recovered $4,300 from the receivables that were written off on May 10. Additional information is as follows: IceKreme sold all machines at $8,000 per unit, All of IceKreme's sales were on credit with terms 3/10, 1/30. IceKreme's records included the following items and their balances as at March 31, 2020: Accounts receivable Allowance of doubtful accounts (credit balance) Net sales $ 86,000 22,000 860,000 Required: 1. Prepare the journal entries to record the transactions that occurred from April to June 30, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Prepare the journal entries to record the transactions that occurred from April 1 to June 30, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Credit Date April 30 2 General Journal Accounts receivable Sales revenue Debit 576,000 576,000 3 May 01 Accounts receivable Sales revenue 416,000 416,000 4 May 05 Cash Sales discounts Accounts receivable OOO 558,720 17,280 576,000 5 May 07 Accounts receivable Sales revenue 160,000 160,000 6 May 10 13,000 Allowance for doubtful accounts Accounts receivable 13,000 4 May 05 Cash Sales discounts 558,720 17,280 Accounts receivable 576,000 5 May 07 160,000 Accounts receivable Sales revenue 160,000 6 May 10 Allowance for doubtful accounts Accounts receivable 13,000 13,000 7 May 15 Sales allowances and returns Cash 24,000 24,000 8 June 01 128,000 Cash Accounts receivable 128,000 9 June 30 4,300 Accounts receivable Allowance for doubtful accounts 4,300 10 June 30 4,300 Cash Accounts receivable 4,300 2. The company uses the aging of accounts receivable method to determine the amount of bad debt expense. The estimatta uncollectible rates for the various age groups are as follows: (Hint: Use a timeline to keep track of accounts receivable in order to determine the age of these receivables.) Aging of accounts receivable Not yet 1-30 days 31-60 days Over 40 days due past due Estimated collectible past due past due 101 151 200 58 a. Determine the amount of receivables that may not be collectible in the future as on June 30, 2020, Amount of uncollectible b. Prepare the journal entry to record bad debt expense at June 30, 2020, the company's fiscal year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. General Journal No Date Debit Credit 3. IceKreme's net accounts receivable were $128.000 at June 30, 2019. Calculate Icekreme's average collection period for fiscal year 2020. (Use 365 days a year. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.) Average collection period days IceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events occurred between April 1 and June 30, 2020: April 10: Received an order from Peter's Appliancen, a wholesaler, for 48 machines. April 30: Sold 72 machines to Yuri Ine. on credit. May 1. The purchasing manager of Peter's Appliances visited Icekrone'e factory and purchased 52 machines on credit, instead of the 48 machines that were previously ordered. May 51 Yuri Ine. paid for the machines purchased on April 30. May 71 Sold 20 machines to Cheng Ltd. on credit. May 10: Wrote oft $13,000 of accounts receivable that were considered uncollectible. These receivables relate to salen made prior to April 1, 2020. May 151 Peter's Appliances returned three defective machines and paid the amount due. June 1. Received $128,000 from Cheng Ltd. on account. June 30: Recovered $4,300 from the receivables that were written off on May 10. Additional information is as follows: IceKreme sold all machines at $8,000 per unit, All of IceKreme's sales were on credit with terms 3/10, 1/30. IceKreme's records included the following items and their balances as at March 31, 2020: Accounts receivable Allowance of doubtful accounts (credit balance) Net sales $ 86,000 22,000 860,000 Required: 1. Prepare the journal entries to record the transactions that occurred from April to June 30, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Prepare the journal entries to record the transactions that occurred from April 1 to June 30, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Credit Date April 30 2 General Journal Accounts receivable Sales revenue Debit 576,000 576,000 3 May 01 Accounts receivable Sales revenue 416,000 416,000 4 May 05 Cash Sales discounts Accounts receivable OOO 558,720 17,280 576,000 5 May 07 Accounts receivable Sales revenue 160,000 160,000 6 May 10 13,000 Allowance for doubtful accounts Accounts receivable 13,000 4 May 05 Cash Sales discounts 558,720 17,280 Accounts receivable 576,000 5 May 07 160,000 Accounts receivable Sales revenue 160,000 6 May 10 Allowance for doubtful accounts Accounts receivable 13,000 13,000 7 May 15 Sales allowances and returns Cash 24,000 24,000 8 June 01 128,000 Cash Accounts receivable 128,000 9 June 30 4,300 Accounts receivable Allowance for doubtful accounts 4,300 10 June 30 4,300 Cash Accounts receivable 4,300 2. The company uses the aging of accounts receivable method to determine the amount of bad debt expense. The estimatta uncollectible rates for the various age groups are as follows: (Hint: Use a timeline to keep track of accounts receivable in order to determine the age of these receivables.) Aging of accounts receivable Not yet 1-30 days 31-60 days Over 40 days due past due Estimated collectible past due past due 101 151 200 58 a. Determine the amount of receivables that may not be collectible in the future as on June 30, 2020, Amount of uncollectible b. Prepare the journal entry to record bad debt expense at June 30, 2020, the company's fiscal year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. General Journal No Date Debit Credit 3. IceKreme's net accounts receivable were $128.000 at June 30, 2019. Calculate Icekreme's average collection period for fiscal year 2020. (Use 365 days a year. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.) Average collection period days