ed 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. debits credits accounts receivable $ 984,750 allowance for doubtful accounts $ 4,500 sales and service revenue 3,300,000 required: assume red hat uses ¼ 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.