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help please IceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events occurred between April 1 and June 30. 2020
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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. 2020 : April 10t Recelved an order from Peter's Appliances, a wholesaler, for 14 machines. Aprit 30 s sold 21 machines to Yurl toe. on credit. May 1 the purchaniag manager of Feter's Appliances vinited Icekreme'a factory and purchased 17 machines on erndit, Lastead of the 14 machines that vere previously ordered. May St Yurt Tne. paid for the machines purchased on Apri1 30. May 7. Sold 10 machines to Cheng L.td. on credit. May 10: Wrote off $14,000 of accounts receivable that were considered uncollectible. These receivablea relate to sales made prior to Apri1.1, 2020. May 15s Peter's Appliances returned two defective machines and paid the asount due. June 11 Received 580,000 from Cheng Ltd. on aecount. June 30 t Recovered 52,600 trom the recelvables that were written off on May 10 . Additional information is as follows: - lcekreme sold all machines at $10,000 per unit. - All of lceKreme's sales were on credit with terms 2/10, n/30. - Icekreme's records included the following items and their balances as at March 31, 2020: 2. The company uses the aging of accounts receivable method to determine the amount of bad debt expense. The estimated uncollectible rates for the various age groups are as follows: (Hint: Use a timeline to keep track of accounts recelvable in order to determine the age of these recelvables.) a. Determine the amount of recelvables that may not be collectible in the future as on June 30,2020. 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.) 3. IceKreme's net accounts receivable were $80,000 at June 30,2019 . Calculate IceKreme's average collection period for fiscal year 2020. (Use 365 days a year. Round intermediate talculations to 2 decimal places. Round the final answer to 1 decimal place.) Step by Step Solution
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