Information related to A-Zero Pty Ltd for the year 20X9 is summarised below. Financial year is ended at 30^th June.

Total credit sales	$1,005,000
Sales return and allowance	$5,000
Doubtful debts written off	$20,000
Opening Balance of Allowance of Doubtful Debts	$25,000
Bad debt estimation under ageing of account receivable method	$15,000
Balance of account receivable before the estimation of bad debt expense	$1,000,000

(Above information may not be applicable to all methods applied)

Required: (please label your responses as 1.,2.,3.)

Three methods are used to estimate the bad debt expense. Answering the following questions for each method applied below.

a) Direct write-off method,

b) 3% of net credit sales method, and

c) ageing of account receivable method.

1. prepare the journal entry to recognize bad debt expense (6/12)

2. estimate the closing balance of allowance of doubtful debts and (3/12)

3. estimate the carrying amount of account receivable at the end of the year 20X9. (3/12)