7 Part 3 of 4 125 points Skipped eBook Required information (The following information applies to the questions displayed below) Blue Skies Equipment Company uses the aging approach to estimate bad debt expense at the end of each 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: (0) not yet due. (2) up to one year pest 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) 10 percent, and (d) 31 percent, respectively At December 31, 2019 (end of the current accounting year), the Accounts Receivable balance was $47,900 and the Allowance for Doubtful Accounts balance was $1,020 (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, 2019, follow P References Date 03/11/2018 06/30/2019 01/31/2019 Explanation Sele Debit 14,100 Credie Balance 14,100 Collection 3,700 10,400 Collection 4,500 5,900 D. Donalds-Account Receivable Date 02/28/2019 04/15/2019 Explanation Sale Debit 21,100 Credit Balance 21,100 Collection 8,700 12,400 11/30/2019 Collection 5,400 7,000 . Napier-Account Receivable Date Explanation 11/30/2019 12/15/2019 Sale Debit 9,900 Credit Balance 9,900 Collection 2,100 7,100 5. Strothers-Account Breivable Date Explanation Debit Credit Balance 03/02/2017 Sale 4,500 4,500 04/15/2017 Collection 4,500 0 09/01/2018 Sale 10,200 10,200 10/15/2018 Collection 3,300 6,900 02/01/2019 Sale 22.500 29,400 03/01/2015 Collection: 8,100 21,300 32/31/2019 Sale 3,100 23,400 T. Thomas-Account Receivable Credit Balance