15 Ageing schedule for accounts receivable LO3 Outdoor Living has the following accounts receivable at year end, broken down by age: Amount $150000 40000 18000 8000 Age Current One month overdue Two months overdue Three months overdue Prior experience has shown that the company will probably collect 95 per cent of its current receivables. Furthermore the collection percentage will fall by 15 per cent for each additional month an account receivable remains outstanding past its due date Required Develop an estimate of Outdoor Living's allowance account alance and prepare the journal entry for bad debt expense assuming that the allowance has an existing $4000 credit balance and $1000 debit balance