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Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods Casebolt Company wrote off the following accounts receivable as uncollectible for the
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Shawn Brooke Amount $10,100 Eve Denton 9,400 Art Malloy 12,900 Cassie Yost 2,400 Total $34,800 a. Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank. Bad Debt Expense Accounts Receivable-Shawn Brooke Accounts Receivable-Eve Denton Accounts Receivable-Art Malloy Accounts Receivable-Cassie Yost 34,800 10,100 9,400 12,900 2,400 b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $3,360,000 of credit sales during the year. Based on past history and industry averages, 1 1/4% of credit sales are expected to be uncollectible. If an amount box does not require an entry, leave it blank. Write-off Allowance for Doubtful Accounts Accounts Receivable-Shawn Brooke Accounts Receivable-Eve Denton Accounts Receivable-Art Malloy Accounts Receivable-Cassie Yost Adjustment Bad Debt Expense Allowance for Doubtful Accounts Feedback Check My Work Partially correct 34,800 10,100 9,400 12,900 2,400 c. How much higher (lower) would Casebolt Company's net income have been under the direct write-off method than under the allowance method? Higher by $
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