The following information pertains to CJs Cabinet Companys sales on account and accounts receivable:

Accounts Receivable Balance, January 1, 2014

$

124,100

Allowance for Doubtful Accounts, January 1, 2014

3,480

Sales on Account, 2014

832,570

Cost of Goods Sold, 2014

591,125

Collections of Accounts Receivable, 2014

(1)

Using the allowance method, the amount of uncollectible accounts expense for 2014

(2)

Net realizable value of receivables at the end of 2014

b.

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

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

861,003