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: Amount Customer Kim Abel Lee Drake Jenny Green Mike Lamb $21,550 33,925 27,565 19,460 $102,500 Total The company prepared the following aging schedule for its accounts receivable on December 31: K Aging Class (Number of Days Past Due) Receivables Balance on December Estimated Percent of Incollectible Account 1 % 2 0-30 days 31-60 days 61-90 days 91-120 days More than 120 days Total receivables $715,000 R 310,000 102,000 76,000 97,000 $1,300,000 More than 120 days 97,000 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. 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 $95,000 and the company uses the analysis of receivables method. If an amount box does not require an entry, leave it blank Write-off Adjustment Harth r itent meth? c. How much higher (lower) would Seaforth International's net income have been under the allowance method than under the direct write-off method? Check My Work