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 32 machines. April 30: Sold 48 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 34 machines on credit, instead of the 32 machines that were previously ordered. 5: Yuri Inc. paid for the machines purchased on April 30. 7: Sold 15 machines to Cheng Ltd. on credit. 10: Wrote off $14,000 of accounts receivable that were considered uncollectible. These receivables relate to sales made prior to April 1, 2020. 15: Peter's Appliances returned three defective machines and paid the amount due. June 1: Received $180,000 from Cheng Ltd. on account. 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 3/10, n/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 $ 70,000 21,600 700,000