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IceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events occurred between April $1$ and June $30$ of

the current year:

April $10$ Received an order from Peter's Appliances, a wholesaler, for $10$ machines.

April $30$ Sold $15$ machines to Yuri Inc. on credit.

May $1$ The purchasing manager of Peter's Appliances visited IceKreme's factory and purchased $12$ machines on credit,

instead of the $10$ machines that were previously ordered.

May $5$ Yuri Inc. paid for the machines purchased on April $30.$

May $7$ Sold $2$ machines to Cheng Ltd$.$ on credit.

May $10$ Wrote off $$13,900$ of accounts receivable that were considered uncollectible. These receivables relate to sales

made prior to April $1$ of the current year.

May $10$ Peter's Appliances paid the amount due to IceKreme.

June $30$ Recovered $$3,950$ from the receivables that were written off on May $10.$

Additional information is as follows:

IceKreme sold all machines at $$19,500$ per unit.

All of IceKreme's sales were on credit with terms $\frac{n}{30}.$

IceKreme's records included the following items and their balances as at March $31$ of the current year:

Accounts receivable

Allowance of doubtful accounts $($credit balance$)$

Net sales

Required:

Prepare the journal entries to record the transactions that occurred from April $1$ to June $30$ of the current year. $($If no entry is required

for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

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 $30$ of the current year.

Amount of uncollectible

b$.$ Prepare the journal enty to record bad debt expense at June $30$ of the current year, the company's flscal year$-$end. $[$if no entry is

required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Fecord the bad deht expenses estimated for the perlod.

Note: Enter deblts before credts:

IceKreme's net accounts receivable were $$80,000$ at June $30$ of the prior year. Calculate IceKreme's average collection period for

the current fiscal year. $($Use $365$ days a year. Round intermediate calculations to $2$ decimal places. Round the final answer to $1$

decimal place.$)$

Average collection period

days

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