CP8-1 (Algo) Recording Accounts Receivable Transactions Using Two Estimation Methods [LO 8-2] Nguyen \& Evans Incorporated, is a software development company that recently reported the following amounts (in thousands) in its unadjusted trial balance as of February 28,2019. Required: 1. Assume Nguyen \& Evans 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 Nguyen \& Evans uses the aging of accounts receivable method and estimates that $6,800 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bad debt expense. TIP: The aging of accounts receivable 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 Nguyen \& Evans's Allowance for Doubtful Accounts at February 28 was a debit balance of $1,360 (thousand). Nguyen \& Evans uses the aging of accounts receivable method and estimates that $6,800 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bad debt expense. 4. If one of Nguyen \& Evans's customers declared bankruptcy, what journal entry would be used to write off its $680 (thousand) balance