eBook Show Me How 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, 54,480. May 15. Received $2,240 as partial payment on the $5,960 account of Dan Pyle. Wrote off the remaining balance as uncollectible, July 27. Received $4,480 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman $3,000 Duane DeRosa 2,240 Teresa Galloway 1,340 Eri Klatt 1,080 Marty Richey 670 31. If necessary, record the year-end adjusting entry for the uncollectible accounts, I ne entry is required, select "No entry and leave the amount boxes blank If an amount box does not require an entry, leave it blank a. Pournalize the transactions under the direct write-off method Apr 13 Bad Ombe Expedire 4400 accounts Receivalile Dan Sheppard THE LAS atvers 10 #Book Show Me How Print a. Journalize the transactions under the direct write-off method. Apt. 13 Bad Debit Expense 4400 Accounts Receivable-Dean Sheppard May 15 Cash Bad Debt Expense Accounts Receivable Dan Pyle July 27 Accounts Receivable-Dean Sheppard July 27 Ch Accounts Receivable Dean Sheppard Dec. 31 Bad Debt Expense Accounts Faceivable-Paul Chapman Accounts Receivable-Duane Deflora Accounts Receivable-Teresa Galloway Accounts Receivable-Marty Richey 100 2,240 $720 4480 9130 10 110 0 10 100000 4.400 1 ellook July 27 Ch Dec. 31 Bad Debt Expense Show Me How Accounts Receivable-Dean sheppard Accounts Receivable Paul Chapman Accounts Receivable Duane DeRosa Accounts Receivable-Teresa Galloway Accounts Receivable-Ernie katt Accounts Receivable-Marty Richey Dec. 31 No entry 38 No entry b. Journalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 1% of credit sales are expected to be uncollectible; Shipway Company recorded $2,184,500 of credit sales during the year Apr 13 Allowance for Doubtful Accounts 4400 Accounts Receivable Dean Sheppard 4400 May 15 Cash 1200 **** Print tem 4400 9.330 10 100000 Book Show Me How Print Im b. Journalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 1% of credit sales are expected to be uncollectible. Shipway Company recorded $2,184,500 of credit sales during the year. Apr 11 Allowance for Doubtful Accounts 4400 Accounts Receivable Dean Sheppard May 15 Sash 2.240 Allowance for Doubtful Accounts 3,720 Accounts Receivable-Dan Prle July 27 Accounts Receivable-Dean Sheppard 4400 Allowance for Doubtful Accounts July 27 Cash 4400 Accounts Receivable-Dean Sheppard Dec. 21 Almance for Doubtful Accounts 9130 Accounts Receivable: Part Chapman Accounts Receivatle-Duane Dellota Accounts Receivable Teresa Galloway 10 10 10 10 10001 Accounts Receivable Dan Pyla July 27 Accounts Receivable Dean Cheppard Allowance for Doubtful Accounts July 27 Cash Accounts Receivable Dean Sheppard Dec. 31 Allowance for Doubtful Accounts Accounts Receivable-Paul Chapman Accounts Receivable Duane DeRosa Accounts Receivable Teresa Galloway Accounts Receivable-Ernie Klatt Accounts Receivable-Marty Richey Dec. 31 Bad Debt Expense 21.045 Allowance for Doubtful Accounts c. How much higher Dower) would Shipway Company's net income have been under the direct write-off method than under the allowance method by s Previous Check My Work 2 more Check My Work uses remaining 0000 10 10 100000 18 4.400 4,400 4.130 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, $4,490. May 15. Received $2,240 as partial payment on the $5,960 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27, Received $4.480 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry) Paul Chapman $3,000 Duane DeRosa 2,240 Teresa Galloway 1,340 Eri Klatt 1,800 Marty Richey 670 31. If necessary, record the year-end adjusting entry for the uncollectible accounts of entry in ured, seet No estry and leave the amouit boas blank, s amount bes does not require a etry www.tok 4 Accuela Balakr CA 180 Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman $3,000 Duane DeRosa 2,240 Teresa Galloway 1,340 Emie Klatt 1,860 Marty Richey 670 31. If necessary, record the year-end adjusting entry for the 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 biark a. Journalize the transactions under the direct write-off method. Apr 13 Bad Det Experte May 15 S July 23 Check My Work Me 00880 008 08 003 000 July 27 Cash Dec. 31 Bad Debt Expense 4400 130 10 100000 10 Accounts Receivable Dean Sheppard Accounts Receivable:Paul Charman Accounts Receivable Ouane DeRosa Accounts Receivable-Ernie klatt counts Receivable Marty Bichey Dec. 31 in entry b. Journalize the transactions under the showarice method. Shipway Company uses the percent of credit sales methed of estimating onde accounts expense Based on past history and industry averages, 1% of crent sales are expected to be uncollectible, thomae Campanyecorded $2.184.500 of credit sales during the yea Apr 11 4wance for Doubitul accounts, 449 16 May AS C 2240 lace for Combat Ass 3220 Check My Wkm Maberenang 4400 2240 200 80 Book Show Me How Print Hom b. Journalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 156 of credit sales are expected to be uncollectible. Shipway Company recorded $2.184,500 of credit sales during the year. Apr. 13 Allowance for Doubtful Accounts 4400 Accounts Receivable-Dean Sheppard May 15 Cash 2240 3700 Accounts faceivable: Dan Pyle July 27 counts Receivable Cean Sheppard 4410 Allowance for Devdafil Accounts July 27 Cat 44 Accounts Receiveie-farli Qurman. Atemsnts Reche de la vie GeigiAL Ch My Chak My Work 18 118 19 19 199000 MAIS MARVIOIDAUan Pyle July 27 Accounts Receivable-Dean Sheppard Allowance for Doubtful Accounts July 27 Cash Accounts Receivable-Dean Sheppard Dec. 31 Allowance for Doubtful Accounts Accounts Recelable-Paul Charman Accounts Receivable Duane bellose Accounts Receivable Teresa Galloway Accounts Receivable-Emie katt Escounts Receivalde-Marty Kichiari 21248 Der. 31 Bad Debt Expense How much higher iwer would shipws Company's net income have beell under the direct wte-off metal thandel the asance mathu 6 Higher HE Check My Work Ghans pous remang 4450 4400 9130 0 19 18 198990 03