No S xes, and choose Check for Updates. 20) At the end of the year, Smith Company has the following information available: t sales ales returns and allowances ts Receivable Allowance for Uncollectible $1,000,000 10,000 560,000 s(Debit) 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% ofcredit sales. What action should Smith Company take in regards to uncollectible accounts at the end of the current year? A) increase the percentage in the percent-of-sales method B) reexamine credit policies, especially the extension of credit C) change to the direct write-off method D) A and B 21) What amount does a company expect to collect from Accounts Receivable? A) gross amount of Accounts Receivable B) net realizable value of Accounts Receivable C) gross amount of Accounts Receivable minus Allowance for Uncollectible Accounts D) B and C ates)