How do you start to do this? What are the steps and calculations and where do all the calculations come from? I'm so confused.

P6-3 (Algo) Determining Bad Debt Expense Based on Aging Analysis L06-2 [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 uncollectibllity is (a) 5 percent, (b) 9 percent, and (c) 34 percent, respectively. At December 31, 2019 (end of the current accounting year), the Accounts Receivable balance was $50,600 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: Date 03/11/2018 06/30/2018 01/31/2019 B. Brown-Account Receivable Explanation Debit Credit Sale 13,500 Collection 3,800 Collection 4,200 Balance 13,500 9,700 5,500 Date 02/28/2019 04/15/2019 11/30/2019 D. Donalds-Account Receivable Explanation Debit Credit Sale 22,300 Collection 7,700 Collection 4,100 Balance 22,300 14,600 10,500 Date 11/30/2019 12/15/2019 N. Napier-Account Receivable Explanation Debit Credit Sale 8,500 Collection 1,300 Balance 8,500 7,200 Date 03/02/2017 04/15/2017 09/01/2018 10/15/2018 02/01/2019 03/01/2019 12/31/2019 S. Strothers-Account Receivable Explanation Debit Credit Sale 5,400 Collection 5,400 Sale 9,800 Collection 4,400 Sale 22,300 Collection 6,300 Sale 2,000 Balance 5,400 0 9,800 5,400 27,700 21,400 23,400 T. Thomas-Account Receivable 11/30/2019 Collection 4,100 10,500 Date 11/30/2019 12/15/2019 N. Napier-Account Receivable Explanation Debit Credit Sale Collection 1,300 8,500 Balance 8,500 7,200 Date 03/02/2017 04/15/2017 09/01/2018 10/15/2018 02/01/2019 03/01/2019 12/31/2019 S. Strothers-Account Receivable Explanation Debit Credit Sale 5,400 Collection 5,400 Sale 9,800 Collection 4,400 Sale 22,300 Collection 6,300 Sale 2,000 Balance 5,400 0 9,800 5,400 27,700 21,400 23,400 Date 12/30/2019 T. Thomas-Account Receivable Explanation Debit Credit Sale 4,000 Balance 4,000 P6-3 Part 1 Required: 1. Compute the total accounts receivable in each age category. Amount Not yet due Up to one year past due More than one year past due Total accounts receivable