eBook Show Me How Calculator 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 Eve Denton Art Malloy $20,400 19,000 26,200 4,900 70,500 Cassie Yost Total 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 70.500 Accounts Recelvable-Shawn Brooke 20,00 Accounts Receivable-Eve Denton 19.000 Accounts Receivable-Art Malloy 26.200 Accounts Receivable-Cassle Yost 4.900 Fandtuck b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $6,800,000 of credit sales during the year. Based on past history and industry averages, 1-1/4% of credit sales are expected to be uncollectible. If an amount box does not require an entry, leave it blank. Allowance for Doubtful Accounts Write-off cancer wa y 72.00 Accounts Receivable-Shawn Brooke 30.400 Accounts Receivable-Eve Denton Accounts Receivable-Art Malloy Accounts Receivable-Cassie Yout Adjustment Bad Debt Expense Allowance for Doubtful Accounts c. How much higher (lower) would Casebolt Company's net income have been under the direct write-off method than under the allowance method? Higher by se