On December 31, 2022, Maria , Inc. had the following account balances

Accounts receivable.$35,000 (debit)

Allowance for uncollectible accounts. $2,000 (credit)

During 2023, Maria had the following transactions and situations:

Sold $210,000 of networking equipment to customers on account.

Allowed customers to return $10,000 of networking equipment.

Wrote off the account of Pasha, Inc., a customer whose A/R balance was $1,000.

Collected $190,000 in cash from customers on account.

Based on an aging analysis of receivables at the end of 2023, Maria estimates that $3,000 of the accounts receivable are likely to be uncollectible.

Required: A. Prepare journal entries (including any adjusting entries) that would be needed to account for the 2023 activity listed above. Accounts Dr. Cr.

B. Briefly explain why GAAP requires organizations to record an expense for credit losses (bad debts) before they actually happen for certain.