Use information below for the question.

Credit Sales for the year: $1,000,000

Accounts Receivable Balance: 100,000

Allowance for Doubtful Accounts: 4,000 credit balance

If your company estimates that it will not collect 5% of its accounts receivable, the year-end adjustment to Allowance for Doubtful Accounts will be: _________

Please provide explanation with work. I've posted twice and have received two different answers.