lceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events ning Bad Debt Expense Based on Aging Analysis and Interpreting Ratios (AP occurred between April 1 and June 30, 2017: April 10 Received an order from Peter's Appliances, a wholesaler, for 10 machines. - April 30 Sold 15 machines to Yuri Inc. on credit. May 1 The purchasing manager of Peter's Appliances visited IceKreme's factory and purchas 12 machines instead of the 10 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 $12,000 of accounts receivable that were considered uncollectible. These receivables relate to sales made prior to April 1, 2017 May 15 Peter's Appliances returned two defective machines and paid the amount due. June 1 Received $80,000 from Cheng Ltd. on account. June 30 Recovered $3,000 from the receivables that were written off on May 10. Additional information is as follows: Ice kreme sold all machines at $10,000 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, 2017: Accounts receivable $ 60.000 Allowance of doubtful accounts (credit balance) 15.000 Net sales 600,000 Not Yet Due Over 60 Days 5% Required: 1. Prepare the journal entries to record the transactions that occurred from April 1 to June 30, 2017 2. The company uses the aging of accounts receivable method to determine the amount of bad deb expense. The estimated uncollectible rates for the various age groups are as follows: Aging of Accounts Receivable 1-30 Days 31-60 Days Past Due Past Due Past Due 10% Estimated % uncollectible 15% 20% Determine the amount of receivables that may not be collectible in the future, and prepare the journal entry to record bad debt expense at June 30, 2017, the company's fiscal year-end. (Hint: Use a timeline to keep track of accounts receivable in order to determine the age of these receivables.) 3. IceKreme's net accounts receivable were $60,000 at June 30, 2016. Calculate IceKreme's average collection period for fiscal year 2017 and explain its meaning. 4. Evaluate IceKreme's average collection period, knowing that two major competitors, Julia Corp and Pino Ltd., reported average collection periods of 18.3 days and 30.7 days, respectively, for fiscal year 2017