Question

Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for bad expense. Assume that Business Solutions has total revenues of 44000 during the first three months of 2017, and that Accounts balance on March 31,2017, is $ 22,867.

prepare the adjusting entry needed for business Solutions to recognize bad debts expense, which are estimated to be 2% of account receivable on March 31, 2017( assume a zero unadjusted balance in the allowance for Doubtful accounts at March 31)