Aging Method Bad Debt Expense Cindy Bagnal, the manager of Cayce Printing Service, has provided the following aging schedule for Cayce's accounts receivable: Accounts Proportion Expected Receivable Category Amount to Default 0-20 days $95,900 0.02 21-40 days 21,500 0.08 41-60 days: 11,700 0.15 Over 60 days 5,300 $134,400 0.30 Cindy indicates that the $134,400 of accounts receivable identified in the table does not include $8,900 of receivables that should be written off. Required: 1. Journalize the $8,900 write-off. If an amount box does not require an entry, leave it blank. (Record write-off of defaulted account) 88 2. Determine the desired postadjustment balance in allowance for doubtful accounts. Round each aging category to the nearest dollar. 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. (Record adjusting entry for bad debt expense estimate) 88