To solve the problem, let's break it down step by step:
### Part 1: Compute the Amount of Expected Bad Debts
To compute the expected bad debts based on the ageing of accounts receivables, we calculate the expected uncollectible amounts for each category:
1. **Not yet due:**
- Amount: Rs. 85,000
- Expected Uncollectible %: 0.5%
- Expected Bad Debt: \( 85,000 \times 0.005 = Rs. 425 \)
2. **60 days past due:**
- Amount: Rs.