Credits Debits $27,191 Accounts Receivable Allowance for Doubtful Accounts Sales and Service Revenue $ 945 154,812 Required: (For all requirements, enter your answers in whole dollars.) 1. Assume Red Hat uses 12 of 1 percent of revenue to estimate its bad debt expense for the year. Prepare the adjusting journal entry required at February 29 for recording Bad Debt Expense. (Remember to enter your answers in whole dollars. Since the numbers in the table above are in thousands, you should take your answer and multiple by 1000 to record in whole dollars.) 2. Assume instead that Red Hat uses the aging of accounts receivable method and estimates that $993 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at February 29 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 (Remember to enter your answers in whole dollars. Since the numbers in the table above are in thousands, you should take your answer and multiple by 1000 to record in whole dollars.) 3. Assume that the unadjusted balance in Red Hat's Allowance for Doubtful Accounts at February 29 was a debit balance of $2,750 (thousand). Red Hat uses the aging of accounts receivable method and estimates that $945 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at February 29 for recording bad debt expense (Remember to enter your answers in whole dollars. Since the numbers in the table above are in thousands, you should take your answer and multiple by 1000 to record in whole dollars.) 4. If one of Red Hat's customers declared bankruptcy, what journal entry would be used to write off its $11,000 (thousand) balance? (Remember to enter your answers in whole dollars. Since the numbers in the table above are in thousands, you should take your answer and multiple by 1000 to record in whole dollars.)