AGING METHOD BAD DEBT EXPENSE Carol Simon, the manager of Handy Plumbing has provided you with the following aging schedule for Handy’s accounts receivable:

Accounts Receivable Category Amount Proportion Expected to Default 0–20 days $ 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 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:

. Journalize the $9,400 write-off.

. Determine the desired postadjustment balance in allowance for doubtful accounts.

. If the balance in allowance for doubtful accounts before the $9,400 write-off was a debit of $550, compute bad debt expense.