accounting

Determining account balances: percent of revenue allowance method of accounting for uncollectible accountsThe following information pertains to Leslie’s Floor Store sales on account and accounts receivable.LO 2Accounts receivable balance, January 1, 2012 $ 52,500Allowance for doubtful accounts, January 1, 2012 4,725Sales on account, 2012 925,000Cost of goods sold, 2012 615,000Collections of accounts receivable, 2012 835,000After 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