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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

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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: (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) 8 percent, (b) 11 percent, and ( 33 percent, respectively At December 31, 2019 (end of the current accounting year), the Accounts Receivable balance was $48,900 and the Allowance for Doubtful Accounts balance was $1,120 (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: Date 03/11/2018 06/30/2018 01/31/2019 B. Brown-Account Receivable Explanation Debit Credit Sale 13,200 Collection 4,500 Collection 4,700 Balance 13, 200 8,700 1,000 Date 02/28/2019 04/15/2019 11/30/2019 D. Donald-Account Receivable Explanation Debit Credit Sale 22,400 Collection 7.900 Collection 5,000 Balance 22,400 14,500 9,500 Date 11/30/2019 12/15/2019 N. Napier-Account Receivable Explanation Debit Credit Sale 9,300 Collection 1,500 Balance 9,300 7,800 Data 03/02/2017 04/15/2017 09/01/2018 10/15/2018 02/01/2019 03/01/2015 12/31/2019 S. Strothers Account Receivable Explanation Debit Credit Sale 4,500 Collection 4,500 Sale 9,400 Collection 4,400 Sale 21,200 Collection 5, 400 Sale 2,100 Balance 4,500 0 9,400 5,000 26, 200 20, 800 22,900 Date 12/30/2019 T. Thomas-Account Receivable Explanation Debit Credit Sale 4,700 Balance 4,700 9,400 4,400 09/01/2018 10/15/2018 02/01/2019 03/01/2019 12/31/2019 Sale Collection Sale Collection Sale 21,200 5,400 2,100 Date 12/30/2019 T. Thomas-Account Receivable Explanation Debit Credit Sale 4,700 P6-3 Part 1 Required: 1. Compute the total accounts receivable in each age category. Amount Not yet due Up to one year past due More than one year past due Total accounts receivable $ 0

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