All information below relate to Roche Ltd.s uncollectable accounts for the financial year ended 30 June 2019.

1. Accounts Receivable $70,000
2. Allowance for doubtful debts (Cr) $4,500
3. Credit sales $550,000
4. Sales returns and allowances $20,000
5. Cash Received $510,000
6. Accounts written off (F. Roy) $4,120 on 30^th June 2019.
7. Bad debt expenses is estimated at the rate of 1% of net credit sales.

Required:

1. Calculate the bad debt expense.
2. Record journal entries for account written off and bad debt expense.

Show the closing balances of Accounts Receivable and Allowance for Doubtful Debts.