The following selected transactions were taken from the records of Kemper Company for the year ending December 31, 2008:

a. Journalize the transactions for 2008 under the direct write-off method.

b. Journalize the transactions for 2008 under the allowance method, assuming that the allowance account had a beginning balance of \(\$ 18,000\) on January 1, 2008, and the company uses the analysis of receivables method.

c. How much higher (lower) would Kemper's 2008 net income have been under the direct write-off method than under the allowance method?

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Feb. 2. Wrote off account of L. Armstrong, $7,250. May 10. Received $4,150 as partial payment on the $8,500 account of Jill Knapp. Wrote off the remaining balance as uncollectible. Aug. 12. Received the $7,250 from L. Armstrong, which had been written off on Febru- ary 2. Reinstated the account and recorded the cash receipt. Sept. 27. Wrote off the following accounts as uncollectible (record as one journal entry): Kim Whalen $4,400 Brad Johnson 2,210 Angelina Quan 1,375 Tammy Newsome 2,850 Donna Short 1,690