Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $3,810. Aug. 14. Received $2,710 as partial payment on the $6,820 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $3,810 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): $1,100 Wade Dolan Greg Gagne 690 Amber Kisko 2,630 Shannon Poole 1,520 Niki Spence 420 Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts. Estimated Percent of Uncollectible Accounts 3% Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Number Receivables Balance of Days Past Due) on December 31 0-30 days $183,000 31-60 days 69,000 61-90 days 22,000 91-120 days 8,000 More than 120 days 11,000 Total receivables $293,000 8 25 50 80 Lle TE olaralni al dobowa b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning credit balance of $11,430 on January 1 and the company uses the analysis of receivables method. June 8. Aug. 14 Oct. 16-reinstate Oct. 16-collection II III II II ll1111 11 II 1.1 II II bbllll II Dec. 31-write-off Dec. 31-adjusting c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? by