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 $ 88,200 0.02 21–40 days 21,500 0.08 41–60 days 11,700 0.15 Over 60 days 5,300 0.30

$126,700 Cindy indicates that the $126,700 of accounts receivable identified in the table does not include $8,900 of receivables that should be written off.

Required:

. Journalize the $8,900 write-off.

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

. If the balance in allowance for doubtful accounts before the $8,900 write-off was a debit of $450, compute bad debt expense.