Question

Cindy Bagnal, the manager of Cayce Printing Service, has provided you with the following aging schedule for Cayce’s accounts receivable:
Cindy indicates that the $126,700 of accounts receivable identified in the table does not include $8,900 of receivables that should be written off.
Required:
1. Journalize the $8,900 write-off.
2. Determine the desired postadjustment balance in allowance for doubtful accounts.
3. If the balance in allowance for doubtful accounts before the $8,900 write-off was a debit of $450, compute bad debt expense. Prepare the adjusting entry to record bad debt expense.


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  • CreatedSeptember 22, 2015
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