when providing the solution, can you explain how you get the values for "not yet due", "up to one year past due", "more than one year past due" because I do not know how to do that. **Blue Skies Equipment Company: Aging Approach for Estimating Bad Debt Expense**Blue Skies Equipment Company uses the aging approach to estimate bad debt expense at the end of each accounting year. This approach involves categorizing receivables based on the length of time they have been outstanding. 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 due2. Up to one year past due3. More than one year past dueExperience has shown that for each age group, the average loss rate on the amount of the receivable at year-end due to uncollectibility is:1. 3 percent for not yet due2. 9 percent for up to one year past due3. 28 percent for more than one year past due**Accounts Receivable Balances as of December 31, 2022**- The total Accounts Receivable balance was $48,700.- 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. Below are the details of each on December 31, 2022:1. **B. Brown – Account Receivable** - 03/11/2021 Sale: $13,000 (Debit) - 06/30/2021 Collection: $3,000 (Credit) - Remaining Balance: $10,000 - 01/31/2022 Sale: $2,000 (Debit) - Current Balance: $12,0002. **D. Donalds – Account Receivable** - 02/28/2022 Sale: $21,000 (Debit) - 04/15/2022 Collection: $8,000 (Credit) - Remaining Balance: $13,000 - 11/30/2022 Sale: $7,000 (Debit) - Current Balance: $20,0003. **N. Napier – Account Receivable** - 11/30/2022 Sale: $8,000 (Debit) - 12/15/2022 Collection: $1,000 (Credit) - Remaining Balance: $7,000 - Current Balance: $7,000

Accounts Receivable -Accounts Receivables are the customers to whom sales are made but payment…

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, 2022 (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, 2022, follow: Date 03/11/2021 06/30/2021 01/31/2022 Date 02/28/2022 04/15/2022 11/30/2022 Date 11/30/2022 12/15/2022 Date 03/02/2020 04/15/2020 09/01/2021 10/15/2021 02/01/2022 03/01/2022 12/31/2022 Date 12/30/2022 B. Brown-Account Receivable Explanation Sale Collection Collection Not yet due Up to one year past due More than one year past due Total accounts receivable Explanation D. Donalds-Account Receivable Sale Collection Collection Explanation N. Napier-Account Receivable Sale Collection Explanation Debit 13,000 Sale Collection Sale Collection Sale Collection Sale Debit 21,000 Explanation Sale Debit 8,000 S. Strothers-Account Receivable T. Thomas-Account Receivable Debit 4,000 9,000 21,000 4,000 $ Debit Credit 3,000 3,800 4,000 Required 1 Required 2 Compute the total accounts receivable in each age category. Age Amount Credit 8,000 6,000 Credit 1,000 Complete this question by entering your answers in the tabs below. Credit 4,000 4,500 5,000 Credit Balance 13,000 10,000 6,200 Balance 21,000 13,000 7,000 Required: 1. Compute the total accounts receivable in each age category. 2 Compute the estimated uncollectible amount for each age category and in total. Balance 8,000 7,000 Balance 4,000 0 9,000 4,500 25,500 20,500 24,500 Balance 4,000