P6-3 (Algo) Determining Bad Debt Expense Based on Aging Analysis L06-2 [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: (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) 9 percent, (b) 9 percent, and (c) 34 percent, respectively. At December 31, 2019 (end of the current accounting year), the Accounts Receivable balance was $50,000 and the Allowance for Doubtful Accounts balance was $1,010 (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 13,600 Collection 3,200 Collection 3,500 Balance 13,600 10,400 6,900 Date 02/28/2019 04/15/2019 11/30/2019 D. Donalds-Account Receivable Explanation Debit Credit Sale 21,200 Collection 8,200 Collection 4,600 Balance 21,200 13,000 8,400 Date 11/30/2019 12/15/2019 N. Napier-Account Receivable Explanation Debit Credit Sale 8,200 Collection 2,200 Balance 8,200 6,000 22,200 02/01/2019 03/01/2019 12/31/2019 Sale Collection Sale 8,300 29, 200 20,900 24,600 3,700 Date 12/30/2019 T. Thomas-Account Receivable Explanation Debit Credit Sale 4,100 Balance 4,100 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