Prepare the adjusting entry for bad debt expense at December 31,2019.

Required information P6-3 (Algo) Determining Bad Debt Expense Based on Aging Analysis LO6-2 (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 uncollectibility is (a) 8 percent. (6) 12 percent, and (C) 32 percent, respectively, At December 31, 2019 (end of the current accounting year), the Accounts Receivable balance was $51.800 and the Allowance for Doubtful Accounts balance was $1.000 (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 Explanation Debit Credit Balance 03/11/2018 Sale 14,600 14,600 06/30/2018 Collection 3,200 11,400 01/31/2019 Collection 3,800 7,600 Date 02/28/2019 04/15/2019 11/30/2019 D. Donalds-Account Receivable Explanation Debit Credit Sale 21,600 Collection 7,400 Collection 5,900 Balance 21,600 14,200 8,300 Date 02/28/2019 04/15/2019 11/30/2019 D. Donalds-Account Receivable Explanation Debit Credit Sale 21,600 Collection 7,400 Collection 5,900 Balance 21,600 14,200 8,300 Date 11/30/2019 12/15/2019 N. Napier-Account Receivable Explanation Debit Credit Sale 8,800 Collection 2,600 Balance 8,800 6,200 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 5,800 Collection 5,800 Sale 10,700 Collection 3,500 Sale 21,700 Collection 8,300 Sale 3,800 Balance 5,800 0 10,700 7,200 28,900 20,600 24,400 Date 12/30/2019 T. Thomas-Account Receivable Explanation Debit Credit Sale 5,300 Balance 5,300