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Memory-based collaborative filtering algorithms have been widely adopted in many popular recommender systems, although these approaches all suffer from data sparsity and poor prediction quality problems. Usually, the user-item matrix is quite sparse, which directly leads to inaccurate recommendations. This paper focuses the memory-based collaborative filtering problems on two crucial factors: (1) similarity computation between users or items and (2) missing data prediction algorithms. First, we use the enhanced Pearson Correlation Coefficient (PCC) algorithm by adding one parameter which overcomes the potential decrease of accuracy when computing the similarity of users or items. Second, we propose an effective missing data prediction algorithm, in which information of both users and items is taken into account. In this algorithm, we set the similarity threshold for users and items respectively, and the prediction algorithm will determine whether predicting the missing data or not. We also address how to predict the missing data by employing a combination of user and item information. Finally, empirical studies on dataset MovieLens have shown that our newly proposed method outperforms other state-of-the-art collaborative filtering algorithms and it is more robust against data sparsity.