Great Outdoors Ltd sells outdoor furniture settings on credit. The accounting records at 30 June 2019 reveal the following. Ignore GST.

Credit sales (for year)		$1,006,000
Credit sales returns and allowances (for year)		85,000
Accounts receivable (balance 30 June 2019)		307,000
Allowance for doubtful debts (credit balance 30 June 2019)		1,500

In the past, the company's yearly bad debts expense had been estimated at 2% of net credit sales revenue. It was decided to compare the current method with an ageing of the accounts receivable method. The following analysis was obtained with respect to the accounts receivable:

			Balance		% estimated uncollectable
Accounts not yet due			$165,100		1/2
Accounts overdue:	1030 days		57,300		2
	3160 days		41,400		10
	61120 days		23,900		25
	121 days and over		19,300		40
			$307,000

Prepare the journal entries to adjust the allowance for doubtful debts at 30 June 2019 under:

1.		the net credit sales method
2.		the ageing of accounts receivable method.

Determine the balance in the allowance for doubtful debts account under both methods. (Post entries in the order displayed in the problem statement. Leave blank any fields following your answers that do not require an entry. For example, if there are two rows for entries, and only one entry is required, enter your answer in the first row and leave the second row blank.)