Business
Business, 28.12.2019 02:31, aileenzerr9664

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 $44,000 during the first three months of 2019, and that the accounts receivable balance on march 31, 2019, is $21,967.prepare the adjusting entry needed for business solutions to recognize bad debts expense on march 31, 2019, under each of the following independent assumptions: (assume a zero unadjusted balance in the allowance for doubtful accounts at march 31)(round amounts to the nearest dollar)a) bad debts are estimated to be 1% of total revenues. b) bad debts are estimated to be 2% of accounts receivable.

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