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Red Hat, Incorporated, is a software development company that recently reported the Required: 1. Assume Red Hat uses 1/4 of 1 percent of revenue to estimate its bad debt expense for the year. Prepare the adjusting Journal entry required at February 28 for recording Bad Debt Expense. 2. Assume instead that Red Hat uses the aging of accounts recelvable method and ostimates that $5,000 thousand) of Accounts Recelvable will be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bad debt expense. TIP: The aging of accounts recelvable method focuses on calculating what the adjusted Allowance for Doubtful Accounts balance should be. You need to consider the existing balance when determining the adjustment. 3. Assume that the unadjusted balance in Red Hat's Allowance for Doubtful Accounts at February 28 was a debit balance of $1,000 (thousand). Red Hat uses the aging of accounts recelvable method and estimates that $5,000 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting joumal entry required at February 28 for recording bad debt expense. 4. If one of Red Hat's customers declared bankruptcy, what Journal entry would be used to write off its $500 (thousand) balance? Complete this question by entering your answers in the tabs below. If one of Red Hat's customers declared bankruptcy, what journal entry would be used to write entry is required for a transaction/event, select "No Journal Entry Required" in the first accou dollars rather than in thousands of dollars (e,g. $4 would be entered as $4,000).)

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