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:

Date	Transaction
June 8.	Wrote off account of Kathy Quantel, $4,810.
Aug. 14.	Received $3,420 as partial payment on the $8,610 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible.
Oct. 16.	Received the $4,810 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 $1,390 Greg Gagne 870 Amber Kisko 3,320 Shannon Poole 1,920 Niki Spence 530
Dec. 31.	If necessary, journalize the year-end adjusting entry for uncollectible accounts.

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a. Journalize the transactions under the direct write-off method.

b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $14,430 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	$231,000	1%
31-60 days	87,000	7
61-90 days	27,000	25
91-120 days	10,000	45
More than 120 days	14,000	80
Total receivables	$369,000

c. How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the allowance method?