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Required information P6-3 (Algo) Determining Bad Debt Expense Based on Aging Analysis L06-2 The following information les to the questions played below) Blue Skies Equomcat

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Required information P6-3 (Algo) Determining Bad Debt Expense Based on Aging Analysis L06-2 The following information les to the questions played below) Blue Skies Equomcat Company uses the aging approach to estimate bad debiterse at the end of each accounting year. Great sales occur frequently on terms 80. The balance of each account recevable is aged on the basis of the time periods as follow not yet due, up to one year pot due, and () more than one year pest con Experience has shown that for each age group, the average loss tile on the amount of the receivable at year end due to uncollect 8 percent percent and percent, respectively A: December 31, 2010 end of the current accounting year, the Accounts Receivablanca was $56600 and the Allowance for Doubtful Account balance was 5940 (cedit in determining which cove been paid, the company apoles collections to the best sales tirst. To simply only five customer accounts are wed the details of each on December 31, 2015, foto 8. Brow-out Recent Date EM Debit Batante 03/11/2016 Sale 13,00 Collection 2,10 9,40 01/31/2010 Collection Bate 3/27239 04/15/2015 11/31/2010 D. Boston Recetate Explanation Credit Sate Collection Collection Balance 21, 13,30 . Not Hevable Explanation Benit Credit Sale 6.5 Collection Date 1337 12/15/2015 Balance 2,50 10 6 7 8 Date 11/30/2019 12/15/2019 N. Napier-Account Receivable Explanation Debit Credit Sale Collection 1,400 Balance 8,500 7,200 Date 03/02/2017 N/15/2017 19/01/2018 10/15/2018 02/01/2019 03/01/2019 17/01/2019 S. Strothers-Account Receivable Explanation Debit Sale Credit 4,900 Collection 4,900 Sale 9,200 Collection Sale 3,500 22,600 Collection Sale 3,600 5,800 Balance 4,90 9,206 5.700 27,700 20.900 24.500 Date 12/30/2019 T. Thomas Account Receivable Explanation Debit Credit Sale 5.600 Balance 5,600 P6-3 Part 1 Required: 1. Compute the total accounts receivable in each age category Amount Not yet de Up to one year past due More than one year past due Total accounts receivable 5

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