LO3 15 Ageing schedule for accounts receivable Outdoor Living has the following accounts receivable at year end, broken down by age: Age Amount Current $150 000 40 000 One month overdue Two months overdue 18000 Three months overdue BODD Four months overdue 11 000 Prior experience has shown that the company will probably collect 95 per cent of its current receivables. Furthermore, the collection percentage will fall by 10 per cent (85%, 75% etc.) for each additional month an account receivable remains outstanding past its due date. REQUIRED Develop an estimate of Outdoor Living's allowance account balance and prepare the journal entry for bad debt expense, assuming first the allowance has an existing $4000 credit balance and second $1000 debit balance