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

Accounts Receivable Balance, January 1, 2018..............................$ 78,500

Allowance for Doubtful Accounts, January 1, 2018............................4,710

Sales on Account, 2018.....................................................................550,000

Collections of Accounts Receivable, 2018.......................................556,000

After several collection attempts, Quality Book Sales wrote off $2,850 of accounts that could not be collected. Quality Book Sales estimates that 0.5 percent of sales on account will be uncollectible.

Required

a. Compute the following amounts:

(1) Using the allowance method, the amount of uncollectible accounts expense for 2018.

(2) Net realizable value of receivables at the end of 2018.

b. Explain why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible.