Aging Method Bad Debt Expense}

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

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.
\section*{Required:}
1. Journalize the \(\$ 9,400\) write-off.
2. Determine the desired postadjustment balance in allowance for doubtful accounts.
3. If the preadjustment 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.
\section*{Problem

Transcribed Image Text:

Accounts Receivable Proportion Expected to Default Category 0-20 days Amount S 92,600 0.03 21-40 days 12,700 0.09 41-60 days 17,800 0.14 Over 60 days 2,100 0.30 $125,200