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 2019, and that the Accounts Receivable balance on March 31, 2019, is $21,967.Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense on March 31, 2019, under each of the following independent assumptions:(assume a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31)(Round amounts to the nearest dollar)a) Bad debts are estimated to be 1% of total revenues.b) Bad debts are estimated to be 2% of accounts receivable.