Red Hat, Inc. is a software development company that recently reported the following amounts in its unadjusted trial balance as of Feb. 29, 2016:

Accounts Receivable 512,500,000 (debt)

Allowance for Doubtful Accounts 2,800,000 (cr)

Sales and Service Revenue 2,000,000,000 (cr)

1. Assume Red Hat uses 1/4 of 1 percent of revenue to estimate its bad debt expense for the year. Prepare the adjusting journal entry required at Feb. 29 for recording Bad Debt Expense

2. Assume instead that RH uses the aging of accounts receivable method and estimates that $3,000,000 of Accounts Receivables will be uncollectible. Prepare the adjusting journal entry required at Feb. 29 for recording bad debt expense. TIP: The aging of AR method focuses on calculating what the adjusted AfDA balance should be. You need to consider the existing balance when determining the adjustment

3. Assume that the unadjusted balance in RH's AfDA at Feb. 29 was a debit balance of $1,000,000. RH uses the aging of accounts receivable method and estimates that $991,000 of AR will be uncollectible. Prepare the adjusting journal entry required at Feb. 29 for recording bad debt expense

4. If one of RH's customers declared bankruptcy, what journal entry would be used to write off its $500,000 balance?