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Santana rey, owner of business solutions, realizes that she needs to begin accounting for bad debts expense. assume that business solutions has total revenues of $51,000 during the first three months of 2020, and that the accounts receivable balance on march 31, 2020, is $22,417.required
1. prepare the adjusting entry needed for business solutions to recognize bad debts expense on march
31, 2012, under each of the following independent assumptions (assume a zero unadjusted balance in
the allowance for doubtful accounts at march 31).
a. bad debts are estimated to be 1% of total revenues. (round amounts to the dollar.)
b. bad debts are estimated to be 2% of accounts receivable. (round amounts to the dollar.)
2. assume that business solutions
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