Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31 Apr 13. Wrote off account of Dean Sheppard, 16,830 May 15. Received 13,420 as partial payment on the $9,080 account of Dan Pyle. Wrote of the remaining wance as uncollectible. July 27. Received $6,830 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt Dec. 31. Wrote off the following accounts as uncollectible (record as ane journal entry) Paul Chapman $4,580 Duane Derosa 3,420 Teresa Galloway 2,050 Ernie Klatt 2.870 Marty Richey 1,020 1. If necessary, record the year-end adjusting entry for the uncollectible accounts. If no entry is required, select "No entry and leave the amount boxes blank. Wan amount box does not require an entry, leave it bark a. Journalue the transactions under the direct write-off method. Apr. 13 May 15 I NI 111 II July 27 n.do?invokeretakeAssignmentSessionLocatore&inprogress false -- eBook Show Me How Print them July 22 II II July 22 . Dec. 31 I IIII II II Dec. 31 b. Journalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts per Based on past history and Industry averages, 1% of credit sales are expected to be uncollectible, Shipway Company recorded $3,332,000 of credit sales during the year Apr. 13 10 III May 15 July 27 Check My Work more Check My Work uses remaining Previous Next All work saved Sav May 15 July 27 July 27 HII II I 10 III II II II Dec. 31 Dec, 31 c. How much higher (lower) would Shipway Company's net income have been under the direct write-off method than under the allowance method by & Accounts Payable-Dean Sheppard Accounts Receivable-Dean Sheppard Allowance for Doubtful Accounts Bad Debt Expense Cash No entry uly 27 Accounts Payable-Dean Sheppard Accumulated Depreciation Office Equipment Allowance for Doubtful Accounts Bad Debt Expense ec. 31 Dividends No entry