\begin{tabular}{l} Instrucic \\ \hline Instructions \end{tabular} 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, $8,030. May 15 Received $500 as partial payment on the $7,430 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27 Received $8,030 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 Duane DeRosa $2,205 3,510 Teresa Galloway 4,785 Emie Klatt 1.185 Aequired: A. Journalize the transactions under the dirocf write-off method. If no eniry is roquired, simply skip to the next trarisaction. Refor to the Chart of Accounts for oxact wording of account titles. B. Jourmalize the transections under the allowance mothod, Shipway Cormpany uses the percent of credit sales mothod of ostimating uncollectiblo accounts exponse. Based on past history and industry Iserages, 0.65% of credit salos are expected to be uncollocibie. Shipway Company recorded $4,046,000 of credit sales during the yoar. If no entry is required, simply skip to the noxt transaction. Refer to the Chart of Accounts for exact wording of account tities. C. How much higher (lower) would Shipway Company's not income have been under the direct write-olf method than under the allowance A. Joumalize the transactions under the direct write-atf method. If no entry is required, simply skip to the next transaction. Refor to the Chart of Accounts for oxact warding of account titites. B. Journalize the transactions under the allowance method, Shipway Company uses the percent of credi sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 0.65% of crecit sales are expectod to be uncolloctible. Shipway Company recordod $4,046,000 of crealit sales during for year. If no enty is required, simply skip to the next transaction. Rofer to the Chart of Accounts for exact worcing of account fities. 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