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) 7 percent, (b) 15 percent, and (c) 30 percent, respectively. At December 31, 2014 (end of the current accounting year), the Accounts Receivable balance was $51,200, and the Allowance for Doubtful Accounts balance was $1,030 (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. BrownAccount Receivable Date Explanation Debit Credit Balance 3/11/2013 Sale 13,100 13,100 6/30/2013 Collection 4,600 8,500 1/31/2014 Collection 3,000 5,500 D. DonaldsAccount Receivable Date Explanation Debit Credit Balance 02/28/2014 Sale 22,900 22,900 04/15/2014 Collection 7,500 15,400 11/30/2014 Collection 4,400 11,000 N. NapierAccount Receivable Date Explanation Debit Credit Balance 11/30/2014 Sale 8,100 8,100 12/15/2014 Collection 2,200 5,900 S. StrothersAccount Receivable Date Explanation Debit Credit Balance 03/02/2012 Sale 5,300 5,300 04/15/2012 Collection 5,300 0 09/01/2013 Sale 9,300 9,300 10/15/2013 Collection 3,600 5,700 02/01/2014 Sale 22,000 27,700 03/01/2014 Collection 7,200 20,500 12/31/2014 Sale 2,500 23,000 T. ThomasAccount Receivable Date Explanation Debit Credit Balance 12/30/2014 Sale 5,800 5,800