The following information pertains to Leslie’s floor store sales on account and accounts receivable.

Accounts receivable balance, January 1, 2012 $ 52,500.00

Allowance for doubtful accounts, January 1, 2012 $ 4,725

Sales on account, 2012 $ 925,000

Cost of goods sold, 2012 $ 615,000

Collections on accounts receivable, 2012 $ 835, 000

After several collections attempts, Leslie’s wrote off $3,100 of accounts that could not be collected Leslie’s estimates that bad debt expense will be 0.5 percent of sales on account.

A. Compute the following amounts.

(1) Using the allowance method, the amount of uncollectible accounts expense for 2012.

(2) Net realizable value of receivables at the end of 2012

B. Explain why the uncollectible accounts expense amount is different from the amount that was written off.