Carol Simon, the manager of Handy Plumbing has provided the following aging schedule for Handy's accounts receivable:

Question:

Carol Simon, the manager of Handy Plumbing has provided the following for Handy's accounts receivable:

Accounts Receivable Category 0-20 days 21-40 days 41-60 days Over 60 days Proportion Expected to Default 0.03 Amount $ 9

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 post-adjustment 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.

Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...