Entries for Bad Debt Expense Under the Direct Write-off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Kim Abel Lee Drake Jenny Green Mike Lamb Amount $21,550 33,925 27,565 19,460 $102,500 Total The company prepared the following aging schedule for its accounts receivable on December 31: Receivables Aging Class (Number of Days Past Due) Balance Estimated Percent of on December Uncollectible Accounts 31 0-30 days 31-60 days 61-90 days 91-120 days More than 120 days $715,000 310,000 102,000 1% 15 30 60 76,000 97,000 Aging Class (Number of Days Past Due) Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days 31-60 days 61-90 days 91-120 days More than 120 days $715,000 310,000 102,000 76,000 97,000 $1,300,000 1% 15 30 60 Total receivables a. Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank. b. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning credit balance of $95,000 on January 1 and the company uses the analysis of receivables method. For a compound transaction, if an amount box does not require an entry, leave it blank. Write-off Adjustment c. How much higher (lower) would Seaforth International's net income have been under the allowance method than under the direct write-off method