Question

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, 2019 (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, 2019, follow:

Answer 1

Answer:

hello your question is incomplete attached below is the missing table

answer = $48700

Step-by-step explanation:

Calculate the total account receivable in each age category

1) not yet due age category

 = $4000 + $4000 + $7000

 = $15000

2) up to 1 year age category

  = $20500 + $7000

  = $27500

3) more than 1 year age category

  = $6200

therefore the total amount of  account receivables =  15000 + 27500 + 6200  = $48700