Question: please help 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



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 occurred between April 1 and June 30 , 2020 : Apr-11 107 Meceived an order fron Feter's Appliances, a wholesaler, for 24 machines. April 30 : sold 36 machines to Yuri Ine. on eredit. Nay it The purchaning nanager of Peter's Appliances visited Icekreme's factory and purchased 26 sachines on eredit, instead of the 24 machines that were previously ordered. Kay Si ruri rne. paid for the machines purchased on April 10. May 7 t. sold 15 machines to cheng Ltd. on eredit. May 10, Wrote off $19,000 of accounts receivable that vere considered uncollectible. These receivables relate to alen pade prior to April 1,2020 . May 15t Peter's Appliances returned three defective machines and paid the anount due. June I1 Received $190,000 from cheng ttd, on account. June 301 Recovered $3,100 fron the recelvables that were writen oft on May 10. Additional information is as follows: - Icekreme sold ait machines at \$15,000 per unit. - All of lceKreme'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. 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 recelvables 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 transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the bad debt expenses estimated for the period. Wote Inter debits belare credits. 3. IceKreme's net accounts receivable were $180,000 at June 30,2019 . Calculate iceKreme's average collection period for fiscal year 2020. (Use 365 days a yeac. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
