Entries for Bad Debt Expense under the Direct write-Off and low 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 Aye Wrote of the remaining wance as uncollectible. July 27. Received $6,830 from Dean Sheppard, whose account had been written off on Aprt 13. Reinstated the account and recorded the cash receipt Dec. 31. Wrote of the following accounts as uncollectible (record as ane journal entry) Paul Chapman 54,580 Duane Derosa 3,420 Teresa Galloway 2,050 Ernie Katt 2.870 Marty Richey 1,020 31. If necessary, record the year end adjusting entry for the uncollectible accounts If no entry is required, select "No entry and leave the amount bowed blank, an amount box does not recure entry, teave it Bank a. Journalue the transactions under the direct write-off method. Apr. 13 May 15 1011 1 III II July 27 mon.do?invokeretake AssignmentSessionLocatorinprogress=false Google eBook Show Me How Print them July 27 July 22 . Dec. 31 II Il llllI 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 perse 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 May 15 July 27 Check My Workmore Check My Work uses remaining Previous Next All work saved Sawan May 15 July 27 July 27 II II II II II 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 mon.do?invokeretake AssignmentSessionLocatorinprogress=false Google eBook Show Me How Print them July 27 July 22 . Dec. 31 II Il llllI 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 perse 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 May 15 July 27 Check My Workmore Check My Work uses remaining Previous Next All work saved Sawan uly 27 Accounts Payable-Dean Sheppard Accumulated Depreciation Office Equipment Allowance for Doubtful Accounts Bad Debt Expense Dividends ec. 31 No entry