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 2012, and that the Accounts Receivable balance on March 31, 2012, is $22,867. 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