Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Method The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $8,020. Aug. 14. Received $5,690 as partial payment on the $14,360 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $8,020 from Kathy Quantel, which had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $2,330 Greg Gagne 1,440 Amber Kisko 5,530 Shannon Poole 3,210 Niki Spence 880 Dec. 31 If necessary, record the year-end adjusting entry for the uncollectible accounts. The company prepared the following aging schedule for its accounts receivable: Aging Class (Number Receivables Balance of Days Past Due) on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $385,000 1 % 31-60 days 144,000 8 61-90 days 46,000 20 91-120 days 45 17,000 23,000 More than 120 days 80 Total receivables $615,000 For those amount boxes in which no entry is required, leave the box blank. If an account is not required, select "No entry" from the dropdown box(es). a. Journalize the transactions under the direct write-off method. -. a. Journalize the transactions under the direct write-off method. June 8 Aug. 14 Oct. 16-reinstate Oct. 16-collection IIII I II II IIII I Dec. 31-write-off Dec. 31-adjusting b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $24,060 at the beginning of the year and the company uses the analysis of receivables method. June 8 Aug. 14 Oct. 16-reinstate Oct. 16-collection I lll 10.00. I Dec. 31-write-off Dec. 31-adjusting C. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? by