Entries for bad debt expense under the direct write-off and allowance methods Instructions Chart of Accounts Journal Final Question Instructions The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June Aug 14 Oct Dec 31 8 Wrote off account of Kathy Quantel, $8,475 Received $2,960 as partial payment on the $12,480 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible 16 Received the $8,475 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan Greg Gagne Amber Kisko Shannon Poole Niki Spence If necessary, record the year-end adjusting entry for uncollectible accounts: $4,625 3,595 7,175 3,025 6,650 31 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 $324,800 2% 31-60 days 109,500 4 61-90 days 23,800 11 18,200 33 91-120 days More than 120 days 43,200 80. Total receivables $519,500 Required: A Journalize the transactions under the direct write-off method. I no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. B. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $35,800 and the company uses the analysis of receivables method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles C. How much higher (lower) would Rustic Tables' net income have been under the direct writo-off method than under the allowance method? C. How much higher (lower) would Rustic Tables'2016 net income have been under the direct write-off method than under the allowance method? Higher by $18,260