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P6.6 Determining Bad Debt Expense Based on Aging Analysis and Interpreting Ratios LO6-4 Icekreme inc makes ice cream machines for sale to ice cream parlours.

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P6.6 Determining Bad Debt Expense Based on Aging Analysis and Interpreting Ratios LO6-4 Icekreme inc makes ice cream machines for sale to ice cream parlours. The following events occurted between April 1 and June 30. 2020 2020 Aprill 19: Recelved an order from Peter's Appliances, a wholesaler, for 14 aschines, Aprl1 30: Sold 21 machines to Yurl inc, on cresit, Hay it the purchasing maneger of Peter's Applitances visited feecrese's factory and purchated 17 nachines on eredit, instead of Kay the 14 machints that were previousty ordeced. Kay 51 Yurl Inc. paid for the nachines porchased on April 30. Fay it sold 10 mackines to Cheng ttes. on credit. May 1e: wrote oft \$124, 000 of accounts recelvable that were considered incollectible. these recelivables relate to sales made priar hay ist to Aprin 1,2020 . hay 15i feter's sopilances retarned two defective nachines and paid the asowit dye. Juse 30i hecovered 32 , 600 fron the recelvables that were witten off on thay to. Additional information is as follows: - IceKreme sold all machines at 510000 per unit. - All of lcekreme's sales were on credit with terms 210,n30. - Icekreme's records included the fotlowing items and their balances as at March 31, 2020 . 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.) a. Determine the amount of receivables that may not be collectible in the future as on June 30,2020. b. Prepare the joumal entry to record bad debt expense at June 30, 2020, the company's fiscal year-end. (If no entry is required for a transoction/event, select "No journal entry required" in the first occount field.) Journal entry worksheet Record the bad debt expenses estimated for the period. 3. Kcekremie's net accounts receivable were 580,000 at June 30,2019. Calculate lcekreme's average collection period for fiscal year 2020 (Use 365 days a year. Round intermediate calculations to 2 decimel places. Round the final answer 101 decimal piace.)

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