Please answer the question. I provided two picture's so I do not have to type out everything! **Transaction Report and Journal Entry****Transaction Summary:**- **Date: 02/01/2019** - **Type:** Sale - **Amount:** $21,800 - **Balance:** $27,300- **Date: 03/01/2019** - **Type:** Collection - **Amount:** $6,000 - **Balance:** $21,300- **Date: 12/31/2019** - **Type:** Sale - **Amount:** $2,800 - **Balance:** $24,100**Account Receivable for T. Thomas:**- **Date: 12/30/2019** - **Type:** Sale - **Debit:** $5,400 - **Balance:** $5,400**Instructions:**3. **Adjusting Entry for Bad Debt Expense:** - 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.**Journal Entry Worksheet:**- **Task:** Record the adjusting entry for bad debt expense at December 31, 2019.**Note: Enter debits before credits.**| Transaction | General Journal | Debit | Credit ||-------------|------------------|-------|--------|| A | | | | Blue Skies Equipment Company uses the aging approach to estimate bad debt expense at the end of each accounting year. Credit sales are made on terms n/60. Each account receivable is aged based on three time periods: 1. Not yet due2. Up to one year past due3. More than one year past dueThe average loss rate due to uncollectibility for each group is (a) 4 percent, (b) 13 percent, and (c) 31 percent, respectively.On December 31, 2019, the Accounts Receivable balance was $51,300 with an Allowance for Doubtful Accounts at $1,090 (credit). Collections are applied to the oldest sales first. Presented here are details of five customer accounts as of December 31, 2019:### B. Brown—Account Receivable| Date | Explanation | Debit | Credit | Balance ||------------|-------------|--------|---------|---------|| 03/11/2018 | Sale | 14,300 | | 14,300 || 06/30/2018 | Collection | | 3,200 | 11,100 || 01/31/2019 | Collection | | 4,600 | 6,500 |### D. Donalds—Account Receivable| Date | Explanation | Debit | Credit | Balance ||------------|-------------|--------|---------|---------|| 02/28/2019 | Sale | 22,100 | | 22,100 || 04/15/2019 | Collection | | 8,700 | 13,400 || 11/30/2019 | Collection | | 4,700 | 8,700 |### N. Napier—Account Receivable| Date | Explanation | Debit | Credit | Balance ||------------|-------------|--------|---------|---------|| 11/30/2019 | Sale | 8,800 | | 8,800 || 12/15/2019 | Collection | | 2,200 | 6,600 |### S. Strothers—Account Receivable| Date | Explanation | Debit | Credit

Aging Approach for determination of bad debts expense: Under this method, the amount of expected bad…

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) 13 percent, and (c) 31 percent, respectively. At December 31, 2019 (end of the current accounting year), the Accounts Receivable balance was $51,300 and the Allowance for Doubtful Accounts balance was $1,090 (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: B. Brown-Account Receivable Date 03/11/2018 06/30/2018 01/31/2019 Explanation Sale Collection Collection Debit Credit Balance 14,300 11,100 6,500 14,300 3,200 4,600 D. Donalds-Account Receivable Explanation Sale Collection Collection Debit 22,100 Date 02/28/2019 04/15/2019 11/30/2019 Balance 22,100 13,400 8,700 Credit 8,700 4,700 N. Napier-Account Receivable Explanation Sale Debit 8,800 Balance 8,800 6,600 Date Credit 11/30/2019 12/15/2019 Collection 2,200 Date 03/02/2017 04/15/2017 09/01/2018 10/15/2018 02/01/2019 S. Strothers-Account Receivable Explanation Sale Collection Sale Collection Sale Debit Credit Balance 4,900 4,900 4,900 9,700 9,700 5,500 27,300 4,200 21,800

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q