Please answer the question. I provided two picture's so I do not have to type out everything! S. Strothers-Account ReceivableDebit4,900ExplanationSaleCollectionSaleCollectionSaleCollectionSaleDateCreditBalance03/02/201704/15/201709/01/201810/15/201802/01/201903/01/201912/31/20194,9004,9009,7005,50027,30021,30024,1009,7004,20021,8006,0002,800T. Thomas-Account ReceivableExplanationDateDebitCreditBalance12/30/2019Sale5,4005,4002. Compute the estimated uncollectible amount for each age category and in total.AmountNot yet dueUp to one year past dueMore than one year past dueTotal2$ 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 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) 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 theAllowance for Doubtful Accounts balance was $1,090 (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, 2019, follow:B. Brown-Account ReceivableDebitExplanationSaleCollectionCollectionDateCreditBalance03/11/201806/30/201801/31/201914,30011,1006,50014,3003,2004,600D. Donalds-Account ReceivableExplanationSaleCollectionCollectionDateDebitCreditBalance02/28/201904/15/201911/30/201922,10013,4008,70022,1008,7004,700N. Napier-Account ReceivableExplanationSaleCollectionDateDebitCreditBalance11/30/201912/15/20198,8008,8006,6002,200

Aging Method of Accounts Receivables:- In this method, the company estimates the uncollectible…

Answered: 2. Compute the estimated uncollectible…

2. Compute the estimated uncollectible amount for each age category and in total. Amount Not yet due Up to one year past due More than one year past due Total $

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 85APSA: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto...

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Question

Please answer the question. I provided two picture's so I do not have to type out everything!

S. Strothers-Account Receivable
Debit
4,900
Explanation
Sale
Collection
Sale
Collection
Sale
Collection
Sale
Date
Credit
Balance
03/02/2017
04/15/2017
09/01/2018
10/15/2018
02/01/2019
03/01/2019
12/31/2019
4,900
4,900
9,700
5,500
27,300
21,300
24,100
9,700
4,200
21,800
6,000
2,800
T. Thomas-Account Receivable
Explanation
Date
Debit
Credit
Balance
12/30/2019
Sale
5,400
5,400
2. Compute the estimated uncollectible amount for each age category and in total.
Amount
Not yet due
Up to one year past due
More than one year past due
Total
2$

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
Debit
Explanation
Sale
Collection
Collection
Date
Credit
Balance
03/11/2018
06/30/2018
01/31/2019
14,300
11,100
6,500
14,300
3,200
4,600
D. Donalds-Account Receivable
Explanation
Sale
Collection
Collection
Date
Debit
Credit
Balance
02/28/2019
04/15/2019
11/30/2019
22,100
13,400
8,700
22,100
8,700
4,700
N. Napier-Account Receivable
Explanation
Sale
Collection
Date
Debit
Credit
Balance
11/30/2019
12/15/2019
8,800
8,800
6,600
2,200

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