At the end of the year, Smith Company has the following information available Credit sales Sales returns and allowances Accounts Receivable Allowance for Uncollectible Accounts(Debit) $1,000,000 10,000 560,000 42,000 The company uses the percent -of-sales method to estimate uncollectible accounts and has not prepared the year-end adjusting entry for Uncollectible-Account Expense. In the prior year, uncollectible accounts were estimated at 1% of credit sales. What action should Smith Company take in regards to uncollectible accounts at the end of the current year? O A. increase the percentage in the percent - of- sales method O B. reexamine credit policies C. change to the direct write-off method O D. A and B