The following information pertains to Kee Cabinet Company’s sales on account and accounts receivable:

Accounts Receivable Balance, January 1, Year 2 ......................................$ 96,200
Allowance for Doubtful Accounts, January 1, Year 2 ....................................6,250
Sales on Account, Year 2 .............................................................................726,000
Cost of Goods Sold, Year 2 ..........................................................................473,000
Collections of Accounts Receivable, Year 2 ...............................................715,000

After several collection attempts, Kee Cabinet Company wrote off $3,100 of accounts that could not be collected. Kee estimates that uncollectible accounts expense will be 0.5 percent of sales on account.

Required
a. Compute the following amounts:
(1) Using the allowance method, the amount of uncollectible accounts expense for Year 2.
(2) The net realizable value of receivables at the end of Year 2.
b. Explain why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible.