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, $7,910. Aug. 14. Received $5,620 as partial payment on the $14,160 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $7,910 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the can receipt. Dec. 31. Wrote off the following accounts as uncollectible (recard as one journal entry); Wade Dolan $2,290 Greg Gagne 1,420 Amber Kisko Shannon Poole 3,160 Niki Spence 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. 5,460 870 June Aug. 14 Aug. 14 U 110 II II Oct. 16 Oct. 16 Dec. 31 Dec. 31 Dec 31 D. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $23,730 at the beginning of the year a the company uses the analysis of receivables method, Rustic Tables Company prepared the following aging schedule for its accounts receivabile: Aging Class (Number of Days Past Due) 0-30 days 31-60 days 61-90 days 91-120 days More than 120 days Total receivables Receivables Balance on December 31 $380,000 142,000 45,000 Estimated Percent of Uncollectible Accounts 2% 9 20 45 17,000 23,000 $607,000 80 June Aug. 14 Oct. 16 Oct. 16 Dec. 31 > II JIJIJI OD 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