Simon Homes uses the balance sheet approach (aging method) to account for its bad debts expense and allowance for doubtful debts. Past experience indicates the following percentages of accounts receivable that have been uncollectible.

Age category	Percentage of Estimated Uncollectible
Not yet due	1%
1-30 days	3%
31-60 days	10%
61-90 days	30%
Over 91 days overdue	60%

As at 30 June 2019, the ageing of accounts receivable revealed the following:

Not yet due	$95 000
1-30 days	$35 000
31-60 days	$9 800
61-90 days	$6500
Over 91 days overdue	$3 000

At present the allowance for doubtful debts ledger account has a credit balance of $2,580.

Required:

1. Prepare the necessary journal entry or entries to record bad debts expense for the year ended 30 June 2019. Show all workings. (5 marks)
2. Prepare partial financial statement that includes Accounts Receivable and Allowance for Doubtful Debts and their balances. (2 marks)
3. Discuss types of Receivables. (2 marks)