The CFO of Olaf Limited has prepared a schedule based on her past experience indicating the following percentages of accounts receivable that have been written off as bad.

The present balance of the Allowance for doubtful debts is $1000 CR. As as 30 June, the ageing of accounts receivable revealed the following:

1. Prepare a schedule of ageing of accounts receivable to determine the desired closing balance of Allowance for doubtful debts.
2. Prepare the journal entry to record the closing balance of Allowance for doubtful debts.

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Age category Not yet due 1-30 days overdue 31-60 days overdue 61-90 days overdue Over 90 days overdue Percentage 1 3 10 25 50