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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Accounts Receivable Category Proportion Expected to Default Amount 0-20 days 21-40 days 41-60 days Over 60 days 92,600 12,700 17,800 2,100 $125,200 0.03 0.09 0.14 0.30