Suzuki Supply reports the following amounts at the end of 2012 (before adjustment).

Credit Sales for 2012....................................................... $250,000

Accounts Receivable, December 31, 2012................................. 45,000

Allowance for Uncollectible Accounts, December 31, 2012 ..............1,000 (credit )

Required:

1. Record the adjustment for uncollectible accounts using the percentage-of receivables method. Suzuki estimates 10% of receivables will not be collected.

2. Record the adjustment for uncollectible accounts using the percentage-of-credit sales method. Suzuki estimates 2% of credit sales will not be collected.

3. Calculate the effect on net income (before taxes) and total assets in 2012 for each method.