The following information pertains to CJ’s Cabinet Company’s sales on account and accounts receivable:
Accounts Receivable Balance, January 1, 2013 ........ $ 96,200
Allowance for Doubtful Accounts, January 1, 2013 ....... 6,250
Sales on Account, 2013 .................. 726,000
Cost of Goods Sold, 2013 .................. 473,000
Collections of Accounts Receivable, 2013 ........... 715,000
After several collection attempts, CJ’s Cabinet Company wrote off $3,100 of accounts that could not be collected. CJ’s estimates that uncollectible accounts expense will be 0.5 percent of sales on account.

Required
a. Prepare the general journal entries to:
(1) Record sales on account for 2013.
(2) Record cash collections from accounts receivable for 2013.
(3) Write off the accounts that are not collectible.
(4) Record the estimated uncollectible accounts expense for 2013.
b. Compute the following amounts:
(1) Using the allowance method, the amount of uncollectible accounts expense for 2013.
(2) Net realizable value of receivables at the end of 2013.
c. Explain why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible.