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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 10:
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 Appliances, a wholesaler, for 18 machines. April 30: Sold 27 machines to Yuri Inc. on credit. May 1: The purchasing manager of Peter's Appliances visited Icekreme's factory and purchased 21 machines on credit, instead of the 18 machines that were previously ordered. May 5: Yuri Inc. paid for the machines purchased on April 30. May 7: Sold 10 machines to Cheng Ltd. on credit. May 10: Wrote off $16,000 of accounts receivable that were considered uncollectible. These receivables relate to sales made prior to April 1,2020. May 15: Peter's Appliances returned two defective machines and paid the amount due. June 1: Received $96,000 from Cheng Ltd. on account. June 30: Recovered $2,800 from the receivables that were written off on May 10. Additional information is as follows: - IceKreme sold all machines at $12,000 per unit. - All of IceKreme'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: 3. IceKreme's net accounts receivable were $96,000 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.)
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