Question: 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 pariours.
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 pariours. The following events occurred between April 1 and June 30 , 2020 : Apri1 10: Received an order from Peter's Appliances, a wholesalex, for 14 machines. April 30t sold 21 machines to Yuri Ine. on eredit. May 1t The purchasing eanager of Peter's Appliances vioited IceKreme's factory and purchased 17 machines on credit, Inatead of the 14 machinen that vere previously ordered. May 57 Yuri Inc. paid for the machinen purchased on April 30. May 10. Wrote off $14,000 of accounts receivable that were considered uncollectible. These receivables relate to sales May 10t Wrote oft $14,000 of accounts z May 15: Peter's Appliances ceturned two defective machines and paid the amount due. June 1: Received $80,000 from cheng Ltd. on account, Additional information is as follows: - IceKreme sold all machineli at $10,000 per unit. - All of lcekreme'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: 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.)
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