1-Performance Bike Co. has determined that the proper balance for theAllowance for Doubtful Accountsat December 31 is $372,500. Assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $28,400 as of December 31.

Journalize the adjusting entry for uncollectible accounts as of December 31. Refer to the Chart of Accounts for exact wording of account titles.

2-Performance Bike Co. has determined that the proper balance for theAllowance for Doubtful Accountsat December 31 is $83,076. Assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $7,750 as of December 31.

Journalize the adjusting entry for uncollectible accounts as of December 31. Refer to the Chart of Accounts for exact wording of account titles.

3-Entry for Uncollectible Accounts

Performance Bike Co. has determined that the proper balance for theAllowance for Doubtful Accountsat December 31 is $372,500. Assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $28,400 as of December 31.

Journalize the adjusting entry for uncollectible accounts as of December 31.

4-Entry for Uncollectible Accounts

Performance Bike Co. has determined that the proper balance for theAllowance for Doubtful Accountsat December 31 is $30,261. Assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $5,445 as of December 31.

Journalize the adjusting entry for uncollectible accounts as of December 31.

5-The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31:

Apr.13.Wrote off account of Dean Sheppard, $8,450.May15.Received $500 as partial payment on the $7,100 account of Dan Pyle. Wrote off the remaining balance as uncollectible.July27.Received $8,450 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt.Dec.31.Wrote off the following accounts as uncollectible (record as one journal entry):Paul Chapman$2,225Duane DeRosa3,550Teresa Galloway4,770Ernie Klatt1,275Marty Richey1,69031.If necessary, record the year-end adjusting entry for uncollectible accounts.Required:

A.Journalize the transactions under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.B.Journalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, % of credit sales are expected to be uncollectible. Shipway Company recorded $3,778,000 of credit sales during the year. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.C.How much higher (lower) would Shipway Company's net income have been under the direct write-off method than under the allowance method?