Accounts Receivable Balance, January 1, Year 2 Allowance for Doubtful Accounts, January 1, Year 2 Sales on Account, Year 2 Collections of Accounts Receivable, Year 2 $125,420 3,410 803,990 836,469 After several collection attempts, Quality Book Sales wrote off $2,640 of accounts that could not be collected. Quality Book Sales estimates that 0.50 percent of sales on account will be uncollectible. Required a. Compute the following amounts: (1) Using the allowance method, the amount of uncollectible accounts expense for Year 2. (Round your final answer to nearest whole dollar amount.) (2) Net realizable value of receivables at the end of Year 2. (Round intermediate calculations final answer to nearest whole dollar amount.) 1. Uncollectible accounts expense 2. Net realizable value $ 401,995 b. Why is the uncollectible accounts expense amount different from the amount that was written off as uncollectible? Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible. Uncollectible accounts expense is an estimate of current receivables that may eventually be uncollectible.