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 $34,191 Credits Accounts Receivable Allowance for Doubtful Accounts Sales and Service Revenue $959 161,812 Required For all requirements, enter your answers in whole dollars. 1. Assume Red Hat uses 3/4 of 1 percent of revenue to estimate its bad debt expense for the year. Prepare the adjusting journal entry 2. Assume instead that Red Hat uses the aging of accounts receivable method and estimates that $1,021 (thousand) of Accounts required at February 29 for recording Bad Debt Expense. 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 $1,750 (thousand). Red Hat uses the aging of accounts receivable method and estimates that $959 (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 $10,000 (thousand) balance