Required information 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) 6 percent, (6) 7 percent, and (c) 33 percent, respectively. At December 31, 2019 (end of the current accounting year), the Accounts Receivable balance was $52,400 and the Allowance for Doubtful Accounts balance was $1,100 (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 13,800 Collection 4,100 Collection 3,700 Balance 13,800 9,700 6,000 Date 02/28/2019 04/15/2019 11/30/2019 D. Donalds-Account Receivable Explanation Debit Credit Sale 21,500 Collection 7,100 Collection 5,700 Balance 21,500 14,400 8,700 Date 11/30/2019 12/15/2019 N. Napier-Account Receivable Explanation Debit Credit Sale 9,900 Collection 2,200 Balance 9,900 7,700 Balance 4,500 Date 03/02/2017 04/15/2017 09/01/2018 10/15/2018 02/01/2019 03/01/2019 12/31/2019 S. Strothers-Account Receivable Explanation Debit Credit Sale 4,500 Collection 4,500 Sale 10,100 Collection 4,900 Sale 22,100 Collection 6,500 Sale 3,700 10,100 5,200 27,300 20,800 24,500 Date 12/30/2019 1. Thomas-Account Receivable Explanation Debit Credit Sale 5,500 Balance 5,500 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 P6-3 Part 2 2. Compute the estimated uncollectible amount for each age category and in total. Amount Not yet due Up to one year past due More than one year past due Total $ 0 P6-3 Part 3 3. Prepare the adjusting entry for bad debt expense at December 31, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 Record the adjusting entry for bad debt expense at December 31, 2019. Note: Enter debits before credits. General Journal Debit Credit Transaction A