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 26 machines. April 30: Sold 39 machines to Yuri Inc. on credit. May 1: The purchasing manager of Peter's Appliances visited IceKreme's factory and purchased 28 machines on credit, instead of the 26 machines that were previously ordered. May 5: Yuri Inc. paid for the machines purchased on April 30. May 7: Sold 15 machines to Cheng Ltd. on credit. May 10: Wrote off $20,000 of accounts receivable that were considered uncollectible. These receivables relate to sales made prior to April 1, 202e. May . 15: Peter's Appliances returned two defective machines and paid the amount due. June June 30: Recovered $3,200 from the receivables that were written off on May 18. Additional information is as follows: IceKreme sold all machines at $15,000 per unit. All of IceKreme's sales were on credit with terms 2/10, 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 $ 64,000 19,800 640,000 Required: 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.) View transaction list Journal entry worksheet Record the receipt of order from Peter's Appliance Note: Ente detits before credits Date Gana Josimal Dahl Grer Journal entry worksheet K 1 2 3 4 5 6 7 8 9 10 Record the receipt of order from Peter's Appliance. Note: Enter debits before credits General Journal Debit Credit Dato April 10 Record entry Clear entry View general journal 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 receivable in order to determine the age of these receivables.) Aging of accounts receivable Not yet 1-30 days 31-60 days Over 60 days past due past due Estimated uncollectible 5 189 154 20 due past due 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.) View transaction list Journal entry worksheet Record the receipt of order from Peter's Appliance Note: Ente detits before credits Date Gana Josimal Dahl Grer Journal entry worksheet K 1 2 3 4 5 6 7 8 9 10 Record the receipt of order from Peter's Appliance. Note: Enter debits before credits General Journal Debit Credit Dato April 10 Record entry Clear entry View general journal 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 receivable in order to determine the age of these receivables.) Aging of accounts receivable Not yet 1-30 days 31-60 days Over 60 days past due past due Estimated uncollectible 5 189 154 20 due past due 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.) View transaction list Journal entry worksheet
