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P6-6 Determining Bad Debt Expense Based on Aging Analysis and Interpreting Ratios L06-4 IceKreme Inc, makes ice cream machines for sale to ice cream parlours.
P6-6 Determining Bad Debt Expense Based on Aging Analysis and Interpreting Ratios L06-4 IceKreme Inc, makes ice cream machines for sale to ice cream parlours. The following events occurred between April 1 and June 30, 2020: May April 10: Received an order from Peter's Appliances, a wholesaler, for 34 machines. May 1: The purchasing manager of Peter's Appliances visited IceKreme's factory and purchased 36 machines on credit, instead of the 34 machines that were previously ordered. 5: Yuri Inc. paid for the machines purchased on April 30. 7: Sold 20 machines to Cheng Ltd. on credit. 10: Wrote off $15,000 of accounts receivable that were considered uncollectible. These receivables relate to sales made prior to April 1, 2020. 15: Peter's Appliances returned two defective machines and paid the amount due. 1: Received $96,000 from Cheng Ltd. on account. June 30: Recovered $3,600 from the receivables that were written off on May 10. May May May June Additional information is as follows: IceKreme sold all machines at $6,000 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: Accounts receivable Allowance of doubtful accounts (credit balance) Net sales $ 72,000 22,200 720,000 Required: 1. Prepare the journal entries to record the transactions that occurred from April to June 30, 2020. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field) Vlow transaction let Journal entry worksheet
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