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Required information Skip to question [ The following information applies to the questions displayed below. ] Blue Skies Equipment Company uses the aging approach to

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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)3 percent, (b)9 percent, and (c)28 percent, respectively.
At December 31,2022(end of the current accounting year), the Accounts Receivable balance was $48,700 and the Allowance for Doubtful Accounts balance was $920(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 31,2022, follow:
B. BrownAccount Receivable
Date Explanation Debit Credit Balance
03/11/2021 Sale 13,00013,000
06/30/2021 Collection 3,00010,000
01/31/2022 Collection 3,8006,200
D. DonaldsAccount Receivable
Date Explanation Debit Credit Balance
02/28/2022 Sale 21,00021,000
04/15/2022 Collection 8,00013,000
11/30/2022 Collection 6,0007,000
N. NapierAccount Receivable
Date Explanation Debit Credit Balance
11/30/2022 Sale 8,0008,000
12/15/2022 Collection 1,0007,000
S. StrothersAccount Receivable
Date Explanation Debit Credit Balance
03/02/2020 Sale 4,0004,000
04/15/2020 Collection 4,0000
09/01/2021 Sale 9,0009,000
10/15/2021 Collection 4,5004,500
02/01/2022 Sale 21,00025,500
03/01/2022 Collection 5,00020,500
12/31/2022 Sale 4,00024,500
T. ThomasAccount Receivable
Date Explanation Debit Credit Balance
12/30/2022 Sale 4,0004,000
Required:
Compute the total accounts receivable in each age category.
Compute the estimated uncollectible amount for each age category and in total.Compute the total accounts receivable in each age category.
Age Amount
Not yet due $15,000
Up to one year past due
More than one year past due
Total accounts receivable $15,00
Compute the estimated uncollectible amount for each age category and in total.
Age Amount
Not yet due $450
Up to one year past due
More than one year past due
Total $450

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