PA8-1 Recording Accounts Receivable Transactions Using the Aging Method The Kraft Heinz Company was formed in 2015 with the merger of Kraft Foods and H. J. Heinz Corporation. The company reported the following rounded amounts for the year ended December 29, 2018 (all amounts in millions): CHAPTER 8 Receivables, Bad Debt Expense, and Interest Revenue Required: 1. Assume Kraft Heinz uses 1/2 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year (rounded to the nearest million), assuming no Bad Debt Expense has been recorded yet. 2. Assume instead Kraft Heinz uses the aging of accounts receivable method and estimates that $80 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense. 3. Repeat requirement 2 , except this time assume the unadjusted balance in Kraft Heinz's Allowance for Doubtful Accounts at December 29, 2018, was a debit balance of $20. 4. If one of Kraft Heinz's customers declared bankruptcy, what journal entry would be used to write off its $15 balance