Determining account balances: percent of revenue allowance method of accounting

Determining account balances: percent of revenue allowance method of accounting for uncollectible accountsThe following information pertains to Leslies Floor Store sales on account and accounts receivable.LO 2Accounts receivable balance January 1 2012 $ 52500Allowance for doubtful accounts January 1 2012 4725Sales on account 2012 925000Cost of goods sold 2012 615000Collections of accounts receivable 2012 835000After several collection attempts Leslies wrote off $3100 of accounts that could not be collected. Leslies estimates that bad debts expense will be 0.5 percent of sales on account.Requireda. 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