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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

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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, $5,200. Aug. 14. Received $3,690 as partial payment on the $9,310 account of Rosalle Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $5,200 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 $1,510 940 Greg Gagne Amber Kisko 3,590 Shannon Poole 2,080 Niki Spence 570 Dec. 31 If necessary, record the year-end adjusting entry for the uncollectible accounts. Estimated Percent of Uncollectible Accounts 3% The company prepared the following aging schedule for its accounts receivablet Aging Class (Number Receivables Balance of Days Past Due) on December 31 0-30 days $250,000 31-60 days 94,000 61-90 days 30,000 91-120 days 11,000 More than 120 days 15,000 Total receivables $400,000 20 55 80 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). 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 June 8 - Aug. 14 Oct. 16-reinstate Oct. 16 collection . Dec 31-write-off 0 Dec. 31-adjusting alinance method, assuming that the allowance account had a beginning balance of $15,600 at the b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $15,600 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 DIII l llllll I 1 111110 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

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