b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $4,670,000 of credit sales during the year. Based on past history and industry averages, 1-1/2% of credit sales are expected to be uncollectible. If an amount box does not require an entry, leave it blank. Write-off Allowance for Doubtful Accounts 58,500 Accounts Receivable-Shawn Brooke 17,000 15,800 Accounts Receivable-Eve Denton Accounts Receivable-Art Malloy 21,600 Accounts Receivable-Cassie Yost 4,100 Adjustment Bad Debt Expense Allowance for Doubtful Accounts c. How much higher (lower) would Casebolt Company's net income have been under the direct write-off method than under the allowance method? Higher by $ Entries for Bad Debt Expense under the Direct Write-Off and Allowance Method Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount Shawn Brooke $17,000 Eve Denton 15,800 Art Malloy 21,600 Cassie Yost 4,100 Total 58,500 a. Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank. Bad Debt Expense 58,500 Accounts Receivable-Shawn Brooke 17,000 Accounts Receivable-Eve Denton 15,800 Accounts Receivable-Art Malloy 21,600 Accounts Receivable-Cassie Yost 4,100