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

Accounts Receivable Balance, January 1, 2014	$	125,850
Allowance for Doubtful Accounts, January 1, 2014		3,450
Sales on Account, 2014		881,910
Cost of Goods Sold, 2014		626,156
Collections of Accounts Receivable, 2014		906,984

After several collection attempts, CJs Cabinet Company wrote off $3,010 of accounts that could not be collected. CJs estimates that uncollectible accounts expense will be 1.00 percent of sales on account.

Required
a.	Compute the following amounts.

	(1)	Using the allowance method, the amount of uncollectible accounts expense for 2014. (Round your final answer to nearest whole dollar amount.)

	(2)	Net realizable value of receivables at the end of 2014. (Round intermediate calculations final answer to nearest whole dollar amount.)

b.

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

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