Chart of Accounts Journal Final Question Instructions The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr May July Dec. 13 Wrote off account of Dean Sheppard, $8,360. 15 Received $470 as partial payment on the $7.120 account of Dan Pyle. Wrote off the remaining balance as uncollectible. 27 Received $8,360 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. 31 Wrote off the following accounts as uncollectible (record as one journal entry) Paul Chapman Duane DeRosa Teresa Galloway Emie Klatt Marty Richey 31. If necessary, record the year-end adjusting entry for uncollectible accounts. $2.375 3,560 4,665 1.260 1.795 Required: A Journalize the transactions under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. B. Joumake the transactions under the allowance method. Shway Company uses the percent of credit sales method of estimating uncollectible accounts experise. Based on pest story and industry averages, 0.89% of crece sales are expected to be uncollectible. Shupway Company recorded $3,836,000 of credit sales during the year. I no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account the C. How much higher (lower) would shipway Company's net income have been under the direct write-off method than under the allowance method