c. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?

_____ 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 $14,500 13,500 Eve Denton Art Malloy 18,600 Cassie Yost 3,500 Total 50,100 a. Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank. b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $3,430,000 of credit sales during the year. Based on past history and industry averages, 1-3/4% of credit sales are expected to be uncollectible. If an amount box does not require an entry, leave it blank. Write-off