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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 $53,000 during the first three months of 2022 and that the Accounts Receivable balance on March 31, 2022, is $22,067. Required: 1a. 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. 1b. 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 $20,600 and that one account of $83 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? Complete this question by entering your answers in the tabs below. Req 1A No 1 Req 1B Assume that Business Solutions's Accounts Receivable balance at June 30, 2022, is $20,600 and that one account of $83 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? Note: Do not round intermediate calculations. Answer is complete but not entirely correct. Req 2 Date June 30 General Journal Bad debts expense Allowance for doubtful accounts >> Debit 83 Credit 83 Show less A

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 $53,000 during the first three months of 2022 and that the Accounts Receivable balance on March 31, 2022, is $22,067. Required: 1a. 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. 1b. 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 $20,600 and that one account of $83 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? Complete this question by entering your answers in the tabs below. Req 1A No 1 Req 1B Assume that Business Solutions's Accounts Receivable balance at June 30, 2022, is $20,600 and that one account of $83 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? Note: Do not round intermediate calculations. Answer is complete but not entirely correct. Req 2 Date June 30 General Journal Bad debts expense Allowance for doubtful accounts >> Debit 83 Credit 83 Show less A

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $53,000 during the first three months of 2022 and that the Accounts Receivable balance on March 31, 2022, is $22,067. Required: 1a. 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. 1b. 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 $20,600 and that one account of $83 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 June 30, 2022? Complete this question by entering your answers in the tabs below. Req 1A No 1 Req 1B Assume that Business Solutions's Accounts Receivable balance at June 30, 2022, is $20,600 and that one account of $83 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? Note: Do not round intermediate calculations. X Answer is complete but not entirely correct. Req 2 Date June 30 General Journal Bad debts expense Allowance for doubtful accounts Debit 83 x Credit 83 x Show less ▲
Transcribed Image Text: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 $53,000 during the first three months of 2022 and that the Accounts Receivable balance on March 31, 2022, is $22,067. Required: 1a. 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. 1b. 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 $20,600 and that one account of $83 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 June 30, 2022? Complete this question by entering your answers in the tabs below. Req 1A No 1 Req 1B Assume that Business Solutions's Accounts Receivable balance at June 30, 2022, is $20,600 and that one account of $83 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? Note: Do not round intermediate calculations. X Answer is complete but not entirely correct. Req 2 Date June 30 General Journal Bad debts expense Allowance for doubtful accounts Debit 83 x Credit 83 x Show less ▲
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