The following information pertains to Leslie’s Floor Store sales on account and accounts receivable.
Accounts receivable balance, January 1, 2012 ....... $ 52,500
Allowance for doubtful accounts, January 1, 2012 ... 4,725
Sales on account, 2012 .............. 925,000
Cost of goods sold, 2012 ............. 615,000
Collections of accounts receivable, 2012 ....... 835,000
After several collection attempts, Leslie’s wrote off $3,100 of accounts that could not be collected. Leslie’s estimates that bad debts expense will be 0.5 percent of sales on account.

Required
a. Compute the following amounts.
(1) Using the allowance method, the amount of uncollectible accounts expense for 2012.
(2) Net realizable value of receivables at the end of 2012.
b. Explain why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible.