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, $7,260. Aug. 14. Received $5,150 as partial payment on the $13,000 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $7,260 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 $2,110 Greg Gagne 1,310 Amber Kisko 5,010 Shannon Poole 2,900 Niki Spence 800 Dec. 31. If necessary, record the year-end adjusting entry for uncollectible accounts. 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. June 8 Aug. 14 Oct. 16 Oct. 16 CO 0 Dec. 31 Dec. 31 b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $21,780 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 of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $348,000 1 % 31-60 days 131,000 9 61-90 days 41,000 30 91-120 days 15,000 45 More than 120 days 21,000 90 Total receivables $556,000 June 8 Aug. 14 III II III I Oct. 16 II Oct. 16 Dec. 31 I ll I I III II 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