Red Hat, Inc., is a software development company that recently reported the following amounts in its unadjusted trial balance as of February 29, 2016 Debits $31, 691,000 Credits Accounts Receivable Allouance for Doubtful Accounts Sales and Service Revenue $954,000 159,312,000 Required 1. Assume Red Hat uses 1/2 of 1 percent of revenue to estimate its bad debt expense for the year. Prepare the 2. Assume instead that Red Hat uses the aging of accounts receivable method and estimates that $1,011,000 of adjusting journal entry required at February 29 for recording Bad Debt Expense 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 3. Assume that the unadjusted balance in Red Hat's Allowance for Doubtful Accounts at February 29 was a debit balance of $1,250,000. Red Hat uses the aging of accounts receivable method and estimates that $954,000 of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at February 29 for recording bad debt expense 2 4. If one of Red Hat's customers declared bankruptcy, what journal entry would be used to write off its $10,000,000 balance? 1 of 8 Next> Check my work Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assume Red Hat uses 1/2 of 1 percent of revenue to estimate its bad debt expense for the year. Prepare the adjustin required at February 29 for recording Bad Debt Expense. (If no entry is required for a transaction/event, select "No Jo Required" in the first account field.) View transaction list Journal entry worksheet Record the entry for bad debt expenses under the percentage of credit sales method. General Journal Debit Credit Date February 29 1 of 8 Next View transaction list Journal entry worksheet Record the entry for bad debt expenses under the percentage of credit sales method. Note: Enter debits before credits. Date General Journal Debit Credit February 29 Clear entry View general journal Record entry Check my work Required 1 Required 2 Required 3 Required 4 Assume instead that Red Hat uses the aging of accounts receivable method and estimates that $1,011,000 of Accour be uncollectible. Prepare the adjusting journal entry required at February 29 for recording bad debt expense. TIP: The accounts receivable method focuses on calculating what the adjusted Allowance for Doubtful Accounts balance shoul consider the existing balance when determining the adjustment. (If no entry is required for a transaction/event, selec Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the entry for bad debt expenses under the aging of accounts receivable method. Debit Credit Date General Journal February 29 Check my work quired 2Required 3 Required 4 hat Red Hat uses the aging of accounts receivable method and estimates that $1,011,000 of Accounts Receivable will Prepare the adjusting journal entry required at February 29 for recording bad debt expense. TIP: The aging of ble method focuses on calculating what the adjusted Allowance for Doubtful Accounts balance should be. You need to ting balance when determining the adjustment. (If no entry is required for a transaction/event, select 'No Journal the first account field.) Show lessA es ntry worksheet antry for bad debt expenses under the aging of accounts ethod. s before credits General Journal Debit Credit 1 of 8 Next > Required 1 Required 2 Required 3 Required 4 Assume that the unadjusted balance in Red Hat's Allowance for Doubtful Accounts at February 29 was a debit balance Red Hat uses the aging of accounts receivable method and estimates that $954,000 of Accounts Receivable will be ur Prepare the adjusting journal entry required at February 29 for recording bad debt expense. (If no entry is required fo transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for bad debts as of February 29, using the aging of accounts receivable method. Note: Enter debits before credits General Journal Debit Credit Date February 29 1of 8 Next > uired 2 Required 3 Required 4 unadjusted balance in Red Hat's Allowance for Doubtful Accounts at February 29 was a debit balance of $1,250,000. aging of accounts receivable method and estimates that $954,000 of Accounts Receivable will be uncollectible. ting journal entry required at February 29 for recording bad debt expense. (If no entry is required for a t, select "No Journal Entry Required" in the first account field.) Show less st ntry worksheet adjusting entry for bad debts as of February 29, using the aging receivable method. General Journal Debit Credit 1 of 8 Next> plete this question by entering your answers in the tabs below. uired 1 Required 2 Required 3Required 4 of Red Hat's customers declared bankruptcy, what journal entry would be used to write off its $10,000,000 bal equired for a transac ction/event, select "No Journal Entry Required in the first account field.) iew transaction list Journal entry worksheet Record the write-off of a $10,000,000 customer account, which is not collectible due to bankruptcy. Note: Enter debits before credits ransaction General Journal Debit Credit 1 of Nex > ed 2 Required 3 Required4 ustomers declared bankruptcy, what journal entry would be used to write off its $10,000,000 balance? (If no entry saction/event, select "No Journal Entry Required" in the first account field.) try worksheet vrite-off of a $10,000,000 customer account, which is not Je to bankruptcy. s before credits General Journal Credit 1 of 8 Next >
