Question 2 Accounts Receivable (6 marks) Circle the correct answer

A) Maple companys accounts receivable are $200,000 at the end of the year. The allowance for doubtful accounts has a credit balance of $4,000 before any adjustments are made. The company estimates that 5% of accounts receivable will not be collected. What is the carrying value of the accounts receivable at the end of the year? 1. $196,000 2. $200,000 3. $186,000 4. $190,000

Support your answer here:

B) In the table below, prepare the necessary journal entry(s) to adjust Maple Companys allowance for doubtful account to the correct balance, at year end, based on the information provided in A above:

Account Name	Debit	Credit

C) What method of recording estimated uncollectible accounts is being used in this example?