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Can someone help me solve this problem please Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for bad debts expense.
Can someone help me solve this problem please
Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for bad debts expense. Assume that Business Solutions has total revenues or $58,000 during the first three months of 2022 and that the Accounts Receivable balance on March 31, 2022, is $22,767 Required: 10. Prepare the adjusting entry to record bad debts expense, which are estimated to be 1% of total revenues on March 31, 2022. There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31. 1b. Prepare the adjusting entry to record bad debts expense, which are estimated to be 2% 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 $20,500 and that one account of $80 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? Red 1A Reg 10 Req2 Prepare the adjusting entry to record bad debts expense, which are estimated to be 1% of total revenues on March 31, 2022. There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31. View transaction list Journal entry worksheet Record estimated bad debts. Note: Enter debits before credits General Joumal Debi Credit Date March 31 Record entry Clear entry View general journal Reg 1A Red 1 Reg 2 Prepare the adjusting entry to record bad debts expense, which are estimated to be 2% of accounts receivable on March 31, 2022. There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31. (Do not round intermediate calculations.) View transaction list Journal entry worksheet Step by Step Solution
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