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 by $ 14,825 X 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. Received $8,450 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash July 27. receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman $2,225 Duane DeRosa 3,550 Teresa Galloway 4,770 Ernie Klatt 1,275 Marty Richey 1,690 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. 8.450 a. Journalize the transactions under the direct write-off method. Apr. 13 Bad Debt Expense Accounts Receivable-Dean Sheppard 8,450 Cash 500 May 15 Rad naht France Chapter 8 - In Class Problems eBook Show Me How Calculator Print Item 6,600 Bad Debt Expense Accounts Receivable-Dan Pyle 7,100 July 27-reinstate 8.450 Accounts Receivable-Dean Sheppard Bad Debt Expense 8,450 July 27-collection Cash 8,450 Accounts Receivable-Dean Sheppard 8.450 13,510 2.225 3,550 Dec. 31-write-off Bad Debt Expense Accounts Receivable-Paul Chapman Accounts Receivable-Duane DeRosa Accounts Receivable-Teresa Galloway Accounts Receivable-Ernie Klatt Accounts Receivable-Marty Richeyy 4,770 1,275 1.690 Dec. 31-adjusting No entry No entry C Food Check My Work Check My Work jourse the actions dance the show the profesorador are expected to become recorded $3,728.000 ding the year Accounts Recenter Down for the Chan cecream Accounts Receivable-Marty Richey 1.690 Dec. 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts 2015 Chewy w Remember that under the direct write-off method, Bad Debt Expense is not recorded 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 Learning Objectives 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 by $14,825 x