As at 30 December 2020, accounts receivable amounted to $49,000 (being gross amounts of $50,000, net of allowance for doubtful accounts of $1,000).

At this date, 90% of the accounts receivable were not yet overdue, and the remaining 10% were overdue within one month.

This is estimated that 3% of accounts receivable not overdue are estimated to be uncollectible, and 5% of those overdue within one month are estimated to be uncollectible.

No journal entry was posted regarding bad debt expense for the year ended 31 December 2020.

Required:

1. (a) Calculate the required allowance for doubtful accounts as at 31 December 2020.

2. (b) Prepare the journal entry (for the bad debt expense) for year 2020.