Accounts Receivable-Marty Richey 400 Dec..31 Bad Debt Expense V 12.938 Allowance for Doubtful Accounts 12.938 Feedback Check My Work Remember that under the direct write-off method, Bad Debt Expense is not recorded until the customer's account is determined to be worthless. Under the allowance method once a customer account is identified as uncollectible, it is written off against the allowance account. c. How much higher (lower) would Shipway Company's net income have been under the direct write-off method than under the allowance method? Higher V by $ 28 X Feedback Check My Work Compare the bad debt expense account balance for both methods. Feedback