Rathore & Willis Company, is a software development company that recently reported the following amounts $($in thousands$)$ in its unadjusted trial balance as of February $28,2019.$

Debits Credits

Accounts Receivable $ $986,250$

Allowance for Doubtful Accounts $ $4,800$

Sales and Service Revenue $3,900,000$

Required:

Assume Rathore & Willis uses $$ 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.

Assume instead that Rathore & Willis uses the aging of accounts receivable method and estimates that $$5,600($thousand$)$ 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.

Assume that the unadjusted balance in Rathore & Willis's Allowance for Doubtful Accounts at February $28$ was a debit balance of $$1,120($thousand$).$ Rathore & Willis uses the aging of accounts receivable method and estimates that $$5,600($thousand$)$ of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at February $28$ for recording bad debt expense.

If one of Rathore & Willis$$s customers declared bankruptcy, what journal entry would be used to write off its $$560($thousand$)$ balance?