1. Question Content Area

   Aging Method Bad Debt Expense

   Cindy Bagnal, the manager of Cayce Printing Service, has provided the following aging schedule for Cayces accounts receivable:

   Accounts Receivable Category		Amount		Proportion Expected to Default
   0-20 days		$92,800		0.02
   21-40 days		21,500		0.08
   41-60 days		11,700		0.15
   Over 60 days		5,300		0.30
   		$131,300

   Cindy indicates that the $131,300 of accounts receivable identified in the table does not include $8,900 of receivables that should be written off.

   Required:

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   1. Journalize the $8,900 write-off. If an amount box does not require an entry, leave it blank.

   	Allowance for Doubtful Accounts	8900	0
   	Accounts Receivable	0	8900

   1. The aging method attempts to estimate the ending balance in the Allowance for Doubtful Accounts.

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   2. Determine the desired post adjustment balance in allowance for doubtful accounts. Round each aging category to the nearest dollar. __________________

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   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. If an amount box does not require an entry, leave it blank.

   	Bad Debt Expense	___________	0
   	Allowance for Doubtful Accounts	0	______________