J$.$T$.$ Traverse Company, is a software development company that recently reported the following amounts $($in thousands$)$ in its

unadjusted trial balance as of February $28,2019.$

Required:

Assume J$.$T$.$ Traverse uses $\frac{1}{4}$ 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 J$.$T$.$ Traverse uses the aging of accounts receivable method and estimates that $$5,900($thousand$)$ 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 J$.$T$.$ Traverse's Allowance for Doubtful Accounts at February $28$ was a debit balance of $$1,180$

$($thousand$).$ J$.$T$.$ Traverse uses the aging of accounts receivable method and estimates that $$5,900($thousand$)$ of Accounts

Receivable will be uncollectible. Prepare the adjusting journal entry required at February $28$ for recording bad debt expense.

If one of J$.$T$.$ Traverse's customers declared bankruptcy, what journal entry would be used to write off its $$590($thousand$)$ balance?

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Assume J$.$T$.$ Traverse uses $\frac{1}{4}$ 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. $($If no entry is required for a transaction$/$event$,$ select

$"$No Journal Entry Required" in the first account field. Enter your answers in whole dollars, rather than in thousands of dollars

$($e$.$g$.$ $$4$ would be entered as $$4,000.)$

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