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3. IceKreme's net accounts receivable were $96,000 at June 30, 2019. Calculate IceKreme's average collection period for fiscal year 2020. (Use 365 days a year. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.) Average collection period days

3. IceKreme's net accounts receivable were $96,000 at June 30, 2019. Calculate IceKreme's average collection period for fiscal year 2020. (Use 365 days a year. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.) Average collection period days

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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IceKreme’s net accounts receivable were $96,000 at June 30, 2019. Calculate IceKreme’s average collection period for fiscal year 2020. (Use 365 days a year. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.)

3. IceKreme's net accounts receivable were $96,000 at June 30, 2019. Calculate IceKreme's average collection period for fiscal year 2020. (Use 365 days a year. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.) Average collection period days
Transcribed Image Text:3. IceKreme's net accounts receivable were $96,000 at June 30, 2019. Calculate IceKreme's average collection period for fiscal year 2020. (Use 365 days a year. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.) Average collection period days
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: April 10: Received an order from Peter's Appliances, a wholesaler, for 34 machines. April 30: Sold 51 machines to Yuri Inc. on credit. May 1: May May May May 15: Peter's Appliances returned two defective machines and paid the amount due. June 1: Received $96,000 from Cheng Ltd. on account. June 30: Recovered $3,600 from the receivables that were written off on May 10. Additional information is as follows: IceKreme sold all machines at $6,000 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: ● The purchasing manager of Peter's Appliances visited IceKreme's factory and purchased 36 machines on credit, instead of the 34 machines that were previously ordered. 5: Yuri Inc. paid for the machines purchased on April 30. 7: Sold 20 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. ● Accounts receivable Allowance of doubtful accounts (credit balance) Net sales $ 72,000 22,200 720,000
Transcribed Image Text: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: April 10: Received an order from Peter's Appliances, a wholesaler, for 34 machines. April 30: Sold 51 machines to Yuri Inc. on credit. May 1: May May May May 15: Peter's Appliances returned two defective machines and paid the amount due. June 1: Received $96,000 from Cheng Ltd. on account. June 30: Recovered $3,600 from the receivables that were written off on May 10. Additional information is as follows: IceKreme sold all machines at $6,000 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: ● The purchasing manager of Peter's Appliances visited IceKreme's factory and purchased 36 machines on credit, instead of the 34 machines that were previously ordered. 5: Yuri Inc. paid for the machines purchased on April 30. 7: Sold 20 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. ● Accounts receivable Allowance of doubtful accounts (credit balance) Net sales $ 72,000 22,200 720,000
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