Red hat, incorporated, is a software development company that recently reported the following amounts (in thousands) in its unadjusted trial balance as of February 28, 2019
Red Hat, Incorporated, is a sattware development company that renently reported the following amounts (in thousands) in its unacjusted trial balance as of February 28, 2019. Required: 1. Assume Rod 1 lat uses 1/4 of 1 percent of reverne to estirrate its bad debt expense for the yoer. Prepare the sdjusting journal entry required at tebruary 28 tor recording Had Debt Expense. 2. Assume instead that Red Hat uses the aging of accounts recelvable method and estimates that $5,000 (thousand) of Accounts Reccivable will be uncollectble. Prepere the adjusting jeurnal entry required at rebruery 28 for recording bad debt expense. IIP: I he aging of accounts recelvable method tocuses on calculating what the adjusted Allowance for Doubttul Accounts balance should be. You need to consider the existing balance when determining the adjustment. 3. Assume thet the unedjusted balance in Red I let's Allowance for Doubtrul Accounts at February 28 was a debit balance of $1,000 (thousand). Red Hat uses the aging of accounts recelvable method and estimates that $ b, 000 (thousand) of Accounts Recelvable will be uncollectible. Frepare the adjusting joumal entry required at February 28 for recording bad debt expense. 4. If one of Red I lat's customers declered benkiuptcy, whet journal ontry would be used to wer ite ort its 5500 (thousencd balance? Complete this question by entering your answers in the tabs below. Assume Rod I lat uses y4 of 1 percent of revenue to cstimate its bad debt expense for the year. Prepare the adjusting journal entry required at February 28 for recording Bad Debt Expensee. (II no entry is required for a transactionvevent, select "Ma Jaurmal Entry Required" in the first account field. Enter your answers in whole dollars, rather than in thousends of dollars (e.g. $4 would be entered as $4,000). Journal entry worksheet Record the entry for bad debt expenses under the percentage of credit sales Complete this question by entering your answers in the tabs below. Assume Rod I lat uses 14 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 Experise. (If no entry is required for a transactionvevent, select "Na Jaurmal Entry Required" in the first account field. Enter your answers in whole dollars, rather than in thousends of dollars (e.a. $4 would be entered as $4pn).) Journal entry worksheet Record the entry for bad debt expenses under the percentage of credit sales method. Complete this question by entering your answers in the tabs below. Assume instead that Red list uses the aging of accounts roceivable method and estimates that 55,000 (thousand) of Accounts Reccivable will be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bad debt experise. TIP: The aging of accounts recelvable method focuses on calculating what the adiusted Allowance for Doubtful Accounts balance should he. You need to consider the existing halanes when determining the adjustment. (If no entry is required for a transactionievent, selent "No Journal Entry Recuired" in the first eccount field. Enter your answers in whole dollars, rather than in thousands of dollers (e.9. 31 would be enterod as $4,(000),j Journal entry worksheet Record the entiy for bad debt expenises under the aging of accourits reteivable method. Soce Enter debits befora credits- Complete this question by entering your answers in the tabs below. Assume that the unadjusted balance in fied I lat's Allowance for Doubtful Acoounts at February 28 was a debit balance of $1,000 (thousanid). Red Hat uses the aging of accounts receivatile method and estimates that $5,000 (thousand) af Accounts Receivatile will be uncollectible. Prepare the adjusting 1oumal entry required at February 28 for recording bad debt expense. (If no entry is required for a transartion/event, select "No lournal Fntry Required" in the first ascount field. Fnter your answers in whole dollars, mather than in thousands of dollars (e.g. $1 would be entered as $1,000) ).) Journal entry worksheet Record the adjusting entry for bad debes as of February 28, using the sging of accounts receivable method. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. If one of Red liat's customers declarod bankruptcy, what journal entry would be used to write off its \$500 (thousand) balance? (If no entry is required for a transaction; 'event, select 'No Jaumal Entry Required' in the first account field. Enter your answers in whole dollars, rather than in thousands of dollars (e.q. $4 would be entered as $4,000).) Journal entry worksheet Record the write-off of a $500,000 customer occount, which is not collotible due to bankruptcy. Note: Enter debits before creditz
