Blue Skies Equipment Company uses the aging approach to estimate bad debt expense at the end of each accountingyear. Credit sales occur frequently on terms n/60. The balance of each account receivable is aged on the basis of threetime periods as follows: (1) not yet due, (2) up to one year past due, and (3) more than one year past due. Experience hasshown that for each age group, the average loss rate on the amount of the receivable at year-end due to uncollectibility is(a) 2 percent. (b) 9 percent, and (c) 29 percent, respectively.At December 31, 2022 (end of the current accounting year), the Accounts Receivable balance was $50,000 and theAllowance for Doubtful Accounts balance was $1,030 (credit). In determining which accounts have been paid, thecompany applies collections to the oldest sales first. To simplify, only five customer accounts are used; the details of eachon December 31, 2022, follow:B. Brown-AccountDate Explanation Debit03/11/2021 Sale13,30006/30/2021 Collection.01/31/2022 CollectionDate Explanation Debit22,00002/28/2022 Sale04/15/2022 Collection11/30/2022 CollectionD. Donalds-Account ReceivableCreditDate Explanation Debit9,20011/30/2022 Sale12/15/2022 Collection.ReceivableN. Napier-Account ReceivableCreditShow Transcribed TextDate03/02/2020 Sale04/15/2020 Collection09/01/2021 Sale10/15/2021 Collection02/01/2022 Sale03/01/2022 Collection12/31/2022 SaleCreditDate12/30/2022 Sale3,3002,900S. Strothers-Account ReceivableDate Explanation Debit Credit Balance03/02/2020Sale5,9005,90004/15/2020 Collection09/01/2021 Sale5,90009,5009,500Age8,9005,100Explanation Debit5,9009,50021,3003,700Required 11 Required 2S. Strothers-Account Receivable2,700Not yet dueUp to one year past dueMore than one year past dueTotal accounts receivableBalance13,30010,0007,100SBalance22,00013,1008,000Balance9,2006,500T. Thomas-Account Receivable-Explanation Debit Credit Balance4,8004,800Required:1. Compute the total accounts receivable in each age category.2. Compute the estimated uncollectible amount for each age category and in total.AmountComplete this question by entering your answers in the tabs below.CCredit Balance5,9005,90003,2007,700Compute the total accounts receivable in each age category.9,5006,30027,600ol19,90023,600

Bad Debt Expenses is a ledger that includes accounts that have been written off. Accounts that are…

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) 2 percent, (b) 9 percent, and (c) 29 percent, respectively. At December 31, 2022 (end of the current accounting year), the Accounts Receivable balance was $50,000 and the Allowance for Doubtful Accounts balance was $1,030 (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. Brown-Account Receivable Date Explanation Debit Credit 03/11/2021 Sale 13,300 06/30/2021 Collection 01/31/2022 Collection D. Donalds-Account Receivable Date Explanation Debit Credit 02/28/2022 Sale 22,000 04/15/2022 Collection 11/30/2022 Collection N. Napier-Account Receivable Date Explanation Debit Credit 11/30/2022 Sale 9,200 12/15/2022 Collection Show Transcribed Text 3,300 2,900 Date 03/02/2020 04/15/2020 Collection 09/01/2021 Sale 10/15/2021 Collection 02/01/2022 Sale 03/01/2022 Collection 12/31/2022 Sale 8,900 5,100 S. Strothers-Account Receivable Date Explanation Debit Credit Balance 03/02/2020 Sale 5,900 5,900 04/15/2020 Collection 5,900 0 09/01/2021 Sale 9,500 9,500 Explanation Debit Sale 5,900 9,500 21,300 3,700 Age S. Strothers-Account Receivable Balance 13,300 Balance 9,200 2,700 6,500 Not yet due Up to one year past due More than one year past due Total accounts receivable 10,000 7,100 S Balance 22,000 13,100 8,000 T. Thomas-Account Receivable- Date Explanation Debit Credit 12/30/2022 Sale 4,800 Amount Credit Balance 5,900 0 Required: 1. Compute the total accounts receivable in each age category. 2. Compute the estimated uncollectible amount for each age category and in total. 0 5,900 3,200 7,700 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the total accounts receivable in each age category. 9,500 6,300 27,600 19,900 23,600 Balance 4,800