The following information is available for Quality Book Sales' sales on account and accounts receivable:

Accounts receivable balance, January 1, Year 2	$	125,900
Allowance for doubtful accounts, January 1, Year 2		3,520
Sales on account, Year 2		812,740
Collection on accounts receivable, Year 2		844,776

After several collection attempts, Quality Book Sales's wrote off $2,520 of accounts that could not be collected. Quality Book Sales estimates that 1.25 percent of sales on account will be uncollectible. Required a. Compute the following amounts:

1. (1) Using the allowance method, the amount of uncollectible accounts expense for Year 2. (Round your final answer to nearest whole dollar amount.)
2. (2) The net realizable value of receivables at the end of Year 2. (Round your intermediate calculations and final answer to nearest whole dollar amount.)

b. Why is the uncollectible accounts expense amount different from the amount that was written off as uncollectible?

• Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.
• Uncollectible accounts expense is an estimate of current receivables that may eventually be uncollectible.