Cindy Bagnal, the manager of Cayce Printing Service, has provided you with the following aging schedule for Cayce€™s accounts receivable:
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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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Accounts Proportion Expecte to Default Receivable Category 0-20 days 21-40 days 41-60 days Over 60 days Amount 88,200 21,500 11,700 5,300 $126,700 0.02 0.08 0.15 0.30