b. Joumalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncolectuble accounts expense. Based on past c. How much higher (lower) would Shipway Company's net income have been under the direct write-off method than under the allowance method? by 5 Bad Debt Expense 4.200 Accounts Recervable-Dan Pyle 6,740 July 27 -reinstate Accounts Receivable-Dean Sheppard 5,070 gad Debt Expense. 5,070 July 27 -collection 5,070 Accounts Receivable-Dean Sheppard 5,070 Dec. 31-write-off Bad Debt Expense 10,350 Accounts Receivable-Paul chapman Accounts Receivable-Duane-DeRosa Accounts Receivable-ieresa Galloway Accounts Receivable-Ernie Klatt \begin{tabular}{r|} \hline \\ \hline \\ \hline 3,400 \\ \hline 2,540 \\ \hline 1,520 \\ \hline 2,130 \\ \hline 760 \\ \hline \end{tabular} Accounts-Receivable-Marty Ruchey \begin{tabular}{r} \hline \\ \hline \\ \hline 5,070 \\ \hline \\ \hline \\ \hline 3,400 \\ \hline 2,540 \\ \hline 1,520 \\ \hline 2,130 \\ \hline 760 \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Dec. 31-adjusting Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods 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. May 15. Received $500 as partial payment on the $7,100 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $8,450 from Dean Sheppard, whose account had been written off on Aprit 13. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): 31. If necessary, record the year-end adjusting entry for uncollectible accounts. If no entry is required, select "No Entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Journalize the transactions under the direct write-off method. b. Joumalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncolectuble accounts expense. Based on past c. How much higher (lower) would Shipway Company's net income have been under the direct write-off method than under the allowance method? by 5 Bad Debt Expense 4.200 Accounts Recervable-Dan Pyle 6,740 July 27 -reinstate Accounts Receivable-Dean Sheppard 5,070 gad Debt Expense. 5,070 July 27 -collection 5,070 Accounts Receivable-Dean Sheppard 5,070 Dec. 31-write-off Bad Debt Expense 10,350 Accounts Receivable-Paul chapman Accounts Receivable-Duane-DeRosa Accounts Receivable-ieresa Galloway Accounts Receivable-Ernie Klatt \begin{tabular}{r|} \hline \\ \hline \\ \hline 3,400 \\ \hline 2,540 \\ \hline 1,520 \\ \hline 2,130 \\ \hline 760 \\ \hline \end{tabular} Accounts-Receivable-Marty Ruchey \begin{tabular}{r} \hline \\ \hline \\ \hline 5,070 \\ \hline \\ \hline \\ \hline 3,400 \\ \hline 2,540 \\ \hline 1,520 \\ \hline 2,130 \\ \hline 760 \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Dec. 31-adjusting Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods 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. May 15. Received $500 as partial payment on the $7,100 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $8,450 from Dean Sheppard, whose account had been written off on Aprit 13. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): 31. If necessary, record the year-end adjusting entry for uncollectible accounts. If no entry is required, select "No Entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Journalize the transactions under the direct write-off method
