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) 3 percent, (b) 9 percent, and (c) 28 percent, respectively. At December 31, 2019 (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, 2019, follow: Date 03/11/2018 06/30/2018 01/31/2019 B. Brown-Account Receivable Explanation Sale Collection Collection Debit 13,000 Credit Balance 13,000. 3,000 10,000 3,800 6,200 D. Donalds-Account Receivable Date Explanation 02/28/2019 04/15/2019 11/30/2019 Sale Collection Collection Debit 21,000 Credit Balance 21,000 8,000 13,000 6,000 7,000 N. Napier-Account Receivable Date Explanation 11/30/2019 Sale 12/15/2019 Collection Debit 8,000 Credit Balance 8,000 1,000 7,000 S. Strothers-Account Receivable Date Explanation Debit Credit Balance 03/02/2017 Sale 4,000 4,000 04/15/2017 Collection 4,000 0 09/01/2018 Sale 9,000 9,000 10/15/2018 Collection 4,500 4,500 02/01/2019 Sale 21,000 25,500 03/01/2019 Collection 5,000 20,500 12/31/2019 Sale 4,000 24,500 Date 12/30/2019 T. Thomas-Account Receivable Explanation Sale Debit 4,000 Credit Balance 4,000 Required: 1. Compute the total accounts receivable in each age category. Answer is complete but not entirely correct. Amount Not yet due $ 4,000X Up to one year past due 69 $ 16,000X More than one year past due $ 6,200 Total accounts receivable EA $ 26,200 2. Compute the estimated uncollectible amount for each age category and in total. Not yet due Up to one year past due More than one year past due Total Amount $ 4 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 View journal entry worksheet No Transaction General Journal 1 A Bad debt expense Allowance for doubtful accounts Debit Credit 4,596 4,596 es 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: 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: Income Stat $