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General Ledger Assignment #$3($i$)$ Finish all required

$1$

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 $$55,000$ during the first three months of $2022$ and that the Accounts Receivable balance on March $31,2022,$ is $$22,817.$

Required:

$1$a$.$ Prepare the adjusting entry to record bad debts expense, which are estimated to be $2\%$ of total revenues on March $31,2022.$ There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March $31$

$1$b$.$ Prepare the adjusting entry to record bad debts expense, which are estimated to be $3\%$ of accounts receivable on March $31,2022.$ There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March $31.$

$2.$ Assume that Business Solutions's Accounts Receivable balance at June $30,2022,$ is $$20,850$ and that one account of $$86$ has been written off against the Allowance for Doubtful Accounts since March $31,2022.$ If Rey uses the method in part $1b,$ what adjusting journal entry is made to recognize bad debts expense on June $30,2022?$

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Req $1$ A

Req $18$

Req $2$

Prepare the adjusting entry to record bad debts expense, which are estimated to be $2\%$ of total revenues on March $31,2022.$ There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March $31.$

Journal entry worksheet

Record estimated bad debts.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$March $31,,,],[,,,],[,,,],[,,,],[,,,]]$

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