1. Record summary journal entries related to bad debts for Year 3. 2. Supply the missing dollar amounts noted by (2) for Year 1 and Year 2. Required P6-3 LO6-2 Determining Bad Debt Expense Based on Aging Analysis (AP6-3) accounting year. Credit sales occur frequently on terms n/60. The balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, (2) up to one year past due, and (3) more than one year past due. Experience has shown that for each age group, the average loss rate on the amount of the receivable at year-end due to uncollectibility is (a) 3 percent, (b) 9 percent, and (c) 28 percent, respectively Blue Skies Equipment Company uses the aging approach to estimate bad debt expense at the end of each At December 31, 2014 (end of the current accounting year), the Accounts Receivable balance was $48,700, and the Allowance for Doubtful Accounts balance was $920 (credit). In determining which accounts have been paid, the company applies collections to the oldest sales first. To simplify, only five customer accounts are used; the details of each on December 31, 2014, follow: B. Brown-Account Receivable Balance 13,000 10,000 6.200 Debit Credit Date 3/11/2013 6/30/2013 1/31/2014 Explanation Sale Collection 13,000 3,000 3,800 D. Donalds-Account Receivable 2/28/2014 4/15/2014 11/30/2014 Sale 21,000 8,000 6,000 21,000 13,000 7,000 Collection N. Napier-Account Receivable 11/30/2014 12/15/2014 Sale 8,000 8,000 7,000 1,000 S. Strothers-Account Receivable 3/2/2012 4/15/2012 9/1/2013 1015/2013 2/1/2014 3/1/2014 12/31/2014 4,000 9,000 21,000 4,000 4,000 Sale Collection Sale Collection Sale 4,000 4.500 5,000 9,000 4,500 25.500 20.500 24,500 T. Thomas-Account Receivable 12/30/2014 Sale 4,000 4,000 Required: 1. Compute the total accounts receivable in each 2. Compute the estimated uncollectible amount for each age category and in total