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, $5,830. Aug. 14. Received $4,140 as partial payment on the $10,440 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $5,830 from Kathy Quantel, whose account 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 Greg Gagne Amber Kisko $1,690 1,050 4,020 Shannon Poole 2,330 Niki Spence 640 Dec. 31. If necessary, journalize the year-end adjusting entry for uncollectible accounts. If no entry is required, select "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. 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 blank. a. Journalize the transactions under the direct write-off method. Date Account June 8 Aug. 14 Oct. 16 Oct. 16 Dec. 31 Dec. 31 Debit Credit b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $17,490 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Number Receivables Balance Estimated Percent of of Days Past Due) on December 31 Uncollectible Accounts 0-30 days $280,000 3% 31-60 days 105,000 7 61-90 days 91-120 days More than 120 days Total receivables 33,000 20 12,000 50 17,000 90 $447,000 Date June 8 Aug. 14 Oct. 16 Oct. 16 Account Debit Credit Oct. 16 Dec. 31 Dec. 31 c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? by $