Hayford & Woodward, Inc. began business in January 2014. During 2014, it had credit sales of $29,000,000. As of December 31, it had the following balances in accounts receivable:

	Current	1-30 Days	31-60 Days	61-90 Days	Over 90 Days
Littleton, Inc.	$400,000	$240,000	$120,000
Pigstey Industries	100,000				$15,000
Snowfeld, Inc.	350,000	156,000
Huskers Company	560,000		200,000		250,000
Star Family Enterprises	790,000	360,000
PRB, Inc.	45,000
TK Company	146,000	120,000	130,000	150,000

Hayford & Woodwards auditors explained that the company will need to provide an estimate of its bad debts for the year. Hayford & Woodward is considering the following possibilities:

Calculating the allowance for uncollectible accounts as a percentage of ending accounts receivable using 3,4,5, or 6%in the computations

Calculating bad debt expense as a percentage of credit sales using 0.5, 1.0, 1.5, or 2.0% in the computations.

Calculating the allowance for uncollectable accounts with the aged account receivables method using the following percentages

Current 1-30 Days 31-60 Days 61-90 Days Over 90 Days

1% 2% 6% 20% 75%

During 2015, Hayford & Woodwards sales of $30,500,000 were all on credit. Assume the 2014 allowances are unused in 2015. As of December 31, 2015, it had the following balances in accounts receivable:

	Current	1-30 Days	31-60 Days	61-90 Days	Over 90 Days
Littleton, Inc.	$442,000
Pigstey Industries	450,000		$320,000
Snowfeld, Inc.				$242,000	$340,000
Huskers Company	375,000	$310,000	250,000	50,000	42,000
Star Family Enterprises	800,100	402,000
PRB, Inc.	34,000	11,000
TK Company	115,000	100,000	55,000	55,000	32,000

Which method and percentage do you think Hayford & Woodward should choose and why?

Do the various approaches provide significantly different account balances on the financial statements in either 2014 or 2015