EF 212 - INTRODUCTION TO ACCOUNTING/HANDOUT 9 Q1. On December 31 of last year, the balance sheet of Vaslor Company had Accounts Receivable of $298,000 and a credit balance in Allowance for Uncollectible Accounts of S20,300. During the current year, the company's records included the following selected activities: (a) sales on account, $1,195,000; (b) sales returns and allowances, $73,000: (c) collections from customers, $1,150,000; (d) accounts written off as worthless, $16,000, In the past, the company had found that 1.6 percent of net sales would not be collected 1. Prepare T accounts for Accounts Receivable and Allowance for Uncollectible Accounts. Enter the beginning balances, and show the effects on these accounts of the items listed above, summarizing the year's activity. Determine the ending balance of each account. Compute Uncollectible Accounts Expense and determine the ending balance of Allowance for Uncollec tible Accounts under (a) the percentage of net sales method and (b) the accounts receivable aging method, assuming an aging of the accounts receivable shows that $20,000 may be uncollectible. 4. How do you explain the fact that the two methods in 2 result in different amounts for Uncollectible Accounts Expense? What rationale underlies each method? unhlo naing method to estimate uncollectible