What would the answer be for 2a and 2b?
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 16 machines. April 30: Sold 24 machines to Yuri Inc. on credit. 1: The purchasing manager of Peter's Appliances visited IceKreme's factory and purchased 19 machines on credit, instead of the 16 machines that were previously ordered. 5: Yuri Inc. paid for the machines purchased on April 30. 7: Sold 10 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. May 15: Peter's Appliances returned three defective machines and paid the amount due. June 1: Received $96,000 from Cheng Ltd. on account. June 30: Recovered $2,700 from the receivables that were written off on May 10. May May May Additional information is as follows: IceKreme sold all machines at $12,000 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 $ 54,000 16,800 540,000 No Date Debit Credit General Journal No journal entry required 1 April 10 2 April 30 Accounts receivable 288,000 Sales revenue 288,000 3 May 01 Accounts receivable 228,000 Sales revenue 228,000 4 May 05 Cash 279,360 Sales discounts 8,640 Accounts receivable 288,000 5 May 07 Accounts receivable > 120,000 Sales revenue 120,000 6 May 10 15,000 > Allowance for doubtful accounts Accounts receivable 15,000 7 May 15 Cash 192,000 Sales allowances and returns 36,000 Accounts receivable 228,000 8 June 01 Cash > 96,000 Accounts receivable 96,000 9 June 30 Accounts receivable 2,700 Allowance for doubtful accounts 2,700 10 June 30 Cash 2,700 Accounts receivable 2,700 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.) Not yet Aging of accounts receivable 1-30 days due past due Estimated % uncollectible 5% 10% 31-60 days Over 60 days past due past due 15% 20% a. Determine the amount of receivables that may not be collectible in the future as on June 30, 2020. Answer is not complete. Amount of uncollectible b. Prepare the journal entry to record bad debt expense at June 30, 2020, the company's fiscal year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) X Answer is not complete. No Date General Journal Debit Credit 1 June 30 Bad debt expense Allowance for doubtful accounts
