SHT 01,3 GL GENERAL EDGER ctible mense: of net 4,488; ount of cash that should appear on Merry's balance sheet as of April 30. 4. Why is a bank reconciliation a necessary internal control? Methods of Estimating Uncollectible Accounts and Receivables Analysis P 2. On December 31 of last year, the balance sheet of Union Company had accounts eceivable of $74,500 and a credit balance in Allowance for Uncollectible Accounts of $5,075. During the current year, Union's financial records included the following selected activities: Sales on account, $298,750 Sales returns and allowances, $18,250 vabled Collections from customers, $287,500 3,9252 ollo 0 HT Accounts written off as worthless, $4,000 Dagollections from 11.986.070 Worthles In the past, 1.6 percent of Union's net sales have been uncollectible. REQUIRED allo 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 bal- ance of each account. 2. Compute the amount of uncollectible accounts expense and determine the ending balance of Allowance for Uncollectible Accounts under (a) the percentage of net sales method and (b) the accounts receivable aging method. Assume that an aging 000,212 of the accounts receivable shows that $5,000 may be uncollectible. 3. Compute the receivable turnover and days' sales uncollected using the data from the 00,82 accounts receivable aging method in requirement 2.casa.or . 4. How do you explain that the two methods used in requirement 2 result in different e amounts for uncollectible accounts expense? What rationale underlies each method?