Problem 5-84A (Algorithmic) Aging Method Bad Debt Expense

Cindy Bagnal, the manager of Cayce Printing Service, has provided you with the following aging schedule for Cayce's accounts receivable:

Accounts Receivable Category		Amount		Proportion Expected to Default
0-20 days		$95,300		0.02
21-40 days		21,500		0.08
41-60 days		11,700		0.15
Over 60 days		5,300		0.30
		$133,800

Cindy indicates that the $133,800 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.

		fill in the blank 785c9fff4f9bfb3_2
			fill in the blank 785c9fff4f9bfb3_4
	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. $fill in the blank b46e32000fdf03c_1

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.

		fill in the blank 0a94a0fb9fbb021_2
			fill in the blank 0a94a0fb9fbb021_4
	Record adjusting entry for bad debt expense estimate