Chapter 8 Homework ook Calculator Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $24,300 Lee Drake 31,195 Jenny Green 29,715 Mike Lamb 17,890 Total $103,100 The company prepared the following aging schedule for its accounts receivable on December 31: Receivables Aging Class (Number Balance Estimated Percent of of Days Past Due) on December Uncollectible Accounts 31 0-30 days $735,000 1 % 31-60 days 290,000 61-90 days 111,000 15 91-120 days 70,000 30 More than 120 days 94,000 60 Total receivables $1,300,000 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 Accounts Receivable-Kim Abel 00 pter 8 Homework ok Calculator Bad Debt Expense Accounts Receivable-Kim Abel Accounts Receivable-Lee Drake Accounts Receivable-Jenny Green Accounts Receivable-Mike Lamb Feedback Check My Work Under the direct write-off method, Bad Debt Expense is recorded when the customer's account is determined to be worthless and written-off. There is no adj record estimated bad debt. b. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning balance of $89,0C analysis of receivables method. If an amount box does not require an entry, leave it blank. Allowance for Doubtful Accounts Accounts Receivable-Kim Abel Accounts Receivable-Lee Drake Accounts Receivable-Jenny Green Accounts Receivable-Mike Lamb Bad Debt Expense Allowance for Doubtful Accounts Feedback Check My WVork 00 Juung elity unuer Ehe allowance method, assuming that the allowance account had a beginning balance of $89.C analysis of receivables method. If an amount box does not require an entry, leave it blank. Allowance for Doubtful Accounts Accounts Receivable-Kim Abel Accounts Receivable-Lee Drake Accounts Receivable-Jenny Green Accounts Receivable-Mike Lamb Bad Debt Expense Allowance for Doubtful Accounts Feedback T Check My Work Under the allowance method once a customer's account is identified as uncollectible, it is written off against the allowance account. C. How much higher (lower) would Seaforth International's net income have been under the allowance method than under the direct write-off method? Lower Feedback Y Check My Work Compare the Bad Debt Expense account balance for both methods. Feedback Check My Work Type here to search