Problem 5-84A Aging Method Bad Debt Expense Cindy Bagnal, the manager of Cayce Printing Service, has provided the following aging schedule for Cayce's accounts receivable: Accounts Receivable Category 0-20 days Amount Proportion Expected to Default 0.01 $ 86,550 19,400 21-40 days 0.06 10,250 0.12 41-60 days Over 60 days 4,900 0.25 $121,100 Cindy indicates that the $121,100 of accounts receivable identified in the table does not include $4,600 of receivables that should be written off. Required: 1. Journalize the $4,600 write-off. Record write-off of defaulted account 2. Determine the desired postadjustment balance in allowance for doubtful accounts. Round each aging category to the nearest dollar. $ 86,550 0.01 19,400 0-20 days 21-40 days 41-60 days Over 60 days 0.06 10,250 0.12 4,900 0.25 $121,100 Cindy indicates that the $121,100 of accounts receivable identified in the table does not include $4,600 of receivables that should be written off. Required: 1. Journalize the $4,600 write-off. Record write-off of defaulted account 2. Determine the desired postadjustment balance in allowance for doubtful accounts. Round each aging category to the nearest dollar 3. If the balance in allowance for doubtful accounts before the $4,600 write-off was a debit of $700, compute bad debt expense. Prepare the adjusting entry to record bad debt expense. Record adjusting entry for bad debt expense estimate