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: Customer Amount Kim Abel $21,550 Lee Drake 33,925 27,565 Jenny Green Mike Lamb 19,460 $102,500 Total The company prepared the following aging schedule for its accounts receivable on December 31: Receivables Aging Class (Number Balance Estimated Percent of on December of Days Past Due) Uncollectible Accounts 31 0-30 days $715,000 1% 31-60 days 310,000 61-90 days 102,000 15 91-120 days 76,000 30 More than 120 days 97,000 60 $1,300,000 Total receivables 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 credit balance of $95,000 on January 1 and the company uses the analysis of receivables method. For a compound transaction, if an amount box does not require an entry, leave it blank. Write-off Adjustment Higher uch higher (lower) would Seaforth International's net income have been under the allowance method than under the direct write-off Lower Higher