Required information (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) 4 percent, (6) 12 percent, and (31 percent, respectively. At December 31, 2019 (end of the current accounting year), the Accounts Receivable balance was $51,900 and the Allowance for Doubtful Accounts balance was $1,070 (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 14,500 Collection 4,500 Collection 2,900 Balance 14,500 10,000 7,100 Date 02/28/2019 04/15/2019 11/30/2019 D. Donalds-Account Receivable Explanation Debit Credit Sale 22,400 Collection 8,700 Collection 5,000 Balance 22,400 13,700 8,700 Date 11/30/2019 12/15/2019 N. Napier hecount Receivable Explanation Debit Credit Sale 9,300 Collection 2,700 Balance 9,300 6,600 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 4,700 Collection 4,700 Sale 10,000 Collection 4,100 Sale 21,900 Collection 6.300 Sale 2,300 Balance 4,700 0 0 10,000 5,900 27,800 21,500 23,800 Date 12/30/2019 T. Thomas hecount Receivable Explanation Debit Credit Sale 5,700 Balance 5,700 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.) View transaction list Journal entry worksheet Record the adjusting entry for bad debt expense at December 31, 2019. Note: Enter debits before credits. Transaction General Journal Debit Credit A Record entry Clear entry View general journal 4. Show how the amounts related to accounts receivable should be presented on the 2019 income statement and balance sheet. Complete this question by entering your answers in the tabs below. Income Stat Bal Sheet Show how the amounts related to accounts receivable should be presented on the 2019 income statement. BLUE SKIES EQUIPMENT COMPANY Income Statement (partial) For the Year Ended December 31, 2019 Operating expenses Income Stat Bal Sheet > 4. Show how the amounts related to accounts receivable should be presented on the 2019 income statement and balance sheet. Complete this question by entering your answers in the tabs below. Income Stat Bal Sheet Show how the amounts related to accounts receivable should be presented on the 2019 balance sheet. (Amounts to be deducted should be indicated by a minus sign.) BLUE SKIES EQUIPMENT COMPANY Balance Sheet (partial) As of December 31, 2019 Current assets: $ 0 Income Stat Bal Shoot
