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Record the receipt of order from Peter's Appliance. Record the sale of machines on credit to Yuri Inc. Record the sale of machines to Peter's
Record the receipt of order from Peter's Appliance.
Record the sale of machines on credit to Yuri Inc.
Record the sale of machines to Peter's Appliance.
Record payment received for sale on credit to Yuri Inc.
Record the sale of machines on credit to Cheng Ltd.
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, 2020. May 15: Peter's Appliances returned two defective machines and paid the amount due. June 1: Received $180,000 from Cheng Ltd. on account. June 30: Recovered $3,200 from the receivables that were written off 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 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 $ 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.)Step by Step Solution
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