Assume that Briggs & Stratton Engines Incorporated uses the aging approach to estimate bad debt expense at the end of each accounting year. Credit sales occur frequently on terms n/45. The balance of each account receivable is aged on the basis of four time periods as follows: (1) not yet due, (2) up to 6 months past due, (3) 6 to 12 months past due, and (4) more than 1 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) 1 percent, (b) 5 percent, (c) 20 percent, and (d) 50 percent, respectively. 10 points At December 31, 2022 (end of the current accounting year), the Accounts Receivable balance was $39,500 and the Allowance for Doubtful Accounts balance was $1,550 (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, 2022, follow: Date 03/13/2022 05/12/2022 09/30/2022 R. Devens-Account Receivable Explanation Sale Debit 19,000 Collection Collection Credit 10,000 7,000 Balance 19,000 9,000 2,000 Print References Date 11/01/2021 06/01/2022 12/01/2022 C. Howard-Account Receivable Explanation Debit sale 31,000 Collection coLlection Credit Date - 10/31/2022 12/10/2022 D. McClain-Account Receivable Explanation Debit Sale collection 12,000 20,000 5,000 Credit Balance 31,000 11,000 6,000 Balance 12,000 4,000 Date 05/02/2022 06/01/2022 06/15/2022 17/15/2022 10/01/2022 11/15/2022 12/15/2022 T. Skibinski-Account Receivable Explanation Debit 8,000 Credit Sale 15,000 Sale 10,000 Collection Collection 15,000 10,000 saLe 26,000 Collection 16,000 Sale Balance 15,000 25,000 10,000 4,500 26,000 10,000 14,500 Date 12/30/2022 H. Wu-Account- Receivable Explanation Debit Credit Sale 13,000 Balance 13,000 3. Prepare the adjusting entry for bad debt expense at December 31, 2022.