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please answer all of them I don't have enough questions to put it in different parts and I'm stuck on these, please help Journal entry
please answer all of them I don't have enough questions to put it in different parts and I'm stuck on these, please help
Journal entry
Red Hat, Inc., is a software development company that recently reported the following amounts (in thousands) in its unadjusted trial balance as of February 29, 2016. Debits $28,691 Credits Accounts Receivable Allowance for Doubtful Accounts Sales and Service Revenue $ 948 156, 312 Required: (For al requirements, enter your answers in whole dollars.) 1. Assume Red Hat uses 1/2 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. 2. Assume instead that Red Hat uses the aging of accounts receivable method and estimates that $999 (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. 3. Assume that the unadjusted balance in Red Hat's Allowance for Doubtful Accounts at February 29 was a debit balance of $2,450 (thousand). Red Hat uses the aging of accounts receivable method and estimates that $948 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at February 29 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 $11,000 (thousand) balance
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