[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) 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 Explanation Sale Collection Debit 14,300 Balance 14,300 11,100 6,500 Date Credit 03/11/2018 06/30/2018 01/31/2019 3,200 4,600 Collection Explanation Sale D. Donalds-Account Receivable Debit 22,100 Credit Balance 22,100 13,400 8,700 Date 02/28/2019 04/15/2019 11/30/2019 Collection 8,700 4,700 Collection N. Napier-Account Receivable Explanation Sale Collection Credit Balance 8,800 6,600 Date Debit 11/30/2019 12/15/2019 8,800 2,200
[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) 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 Explanation Sale Collection Debit 14,300 Balance 14,300 11,100 6,500 Date Credit 03/11/2018 06/30/2018 01/31/2019 3,200 4,600 Collection Explanation Sale D. Donalds-Account Receivable Debit 22,100 Credit Balance 22,100 13,400 8,700 Date 02/28/2019 04/15/2019 11/30/2019 Collection 8,700 4,700 Collection N. Napier-Account Receivable Explanation Sale Collection Credit Balance 8,800 6,600 Date Debit 11/30/2019 12/15/2019 8,800 2,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer the question. I provided two picture's so I do not have to type out everything!
![### S. Strothers—Account Receivable
| Date | Explanation | Debit | Credit | Balance |
|------------|-------------|-------|--------|---------|
| 03/02/2017 | Sale | 4,900 | | 4,900 |
| 04/15/2017 | Collection | | 4,900 | 0 |
| 09/01/2018 | Sale | 9,700 | | 9,700 |
| 10/15/2018 | Collection | | 4,200 | 5,500 |
| 02/01/2019 | Sale | 21,800| | 27,300 |
| 03/01/2019 | Collection | | 6,000 | 21,300 |
| 12/31/2019 | Sale | 2,800 | | 24,100 |
### T. Thomas—Account Receivable
| Date | Explanation | Debit | Credit | Balance |
|------------|-------------|-------|--------|---------|
| 12/30/2019 | Sale | 5,400 | | 5,400 |
### Financial Reporting Task
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 Statement
**BLUE SKIES EQUIPMENT COMPANY**
Income Statement (partial)
For the Year Ended December 31, 2019
Operating expenses: [Input required]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7850c6f7-b79b-434d-9395-5e8ad7952f99%2Fd7b042f1-0151-4cee-ad06-47f184448453%2F1xxik6g_processed.png&w=3840&q=75)
Transcribed Image Text:### S. Strothers—Account Receivable
| Date | Explanation | Debit | Credit | Balance |
|------------|-------------|-------|--------|---------|
| 03/02/2017 | Sale | 4,900 | | 4,900 |
| 04/15/2017 | Collection | | 4,900 | 0 |
| 09/01/2018 | Sale | 9,700 | | 9,700 |
| 10/15/2018 | Collection | | 4,200 | 5,500 |
| 02/01/2019 | Sale | 21,800| | 27,300 |
| 03/01/2019 | Collection | | 6,000 | 21,300 |
| 12/31/2019 | Sale | 2,800 | | 24,100 |
### T. Thomas—Account Receivable
| Date | Explanation | Debit | Credit | Balance |
|------------|-------------|-------|--------|---------|
| 12/30/2019 | Sale | 5,400 | | 5,400 |
### Financial Reporting Task
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 Statement
**BLUE SKIES EQUIPMENT COMPANY**
Income Statement (partial)
For the Year Ended December 31, 2019
Operating expenses: [Input required]
Transcribed Image Text:**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) 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
**Explanation:** Sale
**Debit:** 14,300
**Balance:** 14,300
- **Date:** 06/30/2018
**Explanation:** Collection
**Credit:** 3,200
**Balance:** 11,100
- **Date:** 01/31/2019
**Explanation:** Collection
**Credit:** 4,600
**Balance:** 6,500
---
**D. Donalds—Account Receivable**
- **Date:** 02/28/2019
**Explanation:** Sale
**Debit:** 22,100
**Balance:** 22,100
- **Date:** 04/15/2019
**Explanation:** Collection
**Credit:** 8,700
**Balance:** 13,400
- **Date:** 11/30/2019
**Explanation:** Collection
**Credit:** 4,700
**Balance:** 8,700
---
**N. Napier—Account Receivable**
- **Date:** 11/30/2019
**Explanation:** Sale
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