Carol Simon the manager of Handy Plumbing has provided you
Carol Simon, the manager of Handy Plumbing has provided you with the following aging schedule for Handy’s accounts receivable:
Carol indicates that the $125,200 of accounts receivable identified in the table does not include $9,400 of receivables that should be written off.
Required:
1. Journalize the $9,400 write-off.
2. Determine the desired postadjustment balance in allowance for doubtful accounts.
3. If the balance in allowance for doubtful accounts before the $9,400 write-off was a debit of $550, compute bad debt expense. Prepare the adjusting entry to record bad debt expense.
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