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, (b) 16 percent, and (c) 32 percent, respectively. At December 31, 2019 (end of the current accounting year), the Accounts Receivable balance was $53,400 and the Allowance for Doubtful Accounts balance was $1,050 (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 Debit 14,500 Credit Balance 14,500 Collection 3,500 11,000 Collection 3,900 7,100 D. Donalds-Account Receivable Date Explanation 02/28/2019 Sale 04/15/2019 11/30/2019 Collection Collection Debit 22,800 Credit Balance 22,800 8,600 14,200 4,800 9,400 N. Napier-Account Receivable Date Explanation 11/30/2019 12/15/2019 Sale Collection Debit 9,300 Credit Balance 9,300 2,500 6,800 S. Strothers-Account Receivable Date Explanation Debit Credit 03/02/2017 04/15/2017 Sale 4,900 Balance 4,900 Collection 4,900 0 09/01/2018 Sale 9,400 9,400 10/15/2018 Collection 3,300 6,100 02/01/2019 Sale 22,700 28,800 03/01/2019 Collection 7,300 21,500 12/31/2019 Sale 3,600 25,100 Date 12/30/2019 T. Thomas-Account Receivable Explanation Sale Debit 5,000 Credit Balance 5,000