During 20x1, Moon Supply Company had net sales of $2,850,000. Most of the sales were on credit. At the end of 20x1, the balance of Accounts Receivable was $350,000, and Allowance for Uncollectible Accounts had a debit balance of $12,000. Moon Supply Company's management uses two methods of estimating uncollectible accounts expense:

(a) The percentage of uncollectible sales is 1.5 percent of net sales, and

(b) based on an aging of accounts receivable, the end-of-year uncollectible accounts total $35,000. Make the end-of-year adjusting entry to record the uncollectible accounts expense under each method, and tell what the balance of Allowance for Uncollectible Accounts will be after each adjustment. Why are the results different? Which method is likely to be more reliable? E-9