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: June 8. Wrote off account of Kathy Quantel, $7,720. Aug. 14. Received $5,480 as partial payment on the $13,820 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $7,720 from Kathy Quantel, which 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 $2,240 1,390 Greg Gagne Amber Kisko 5,330 3,090 Shannon Poole Nikl Spence 850 Dec. 31 If necessary, record the year-end adjusting entry for the uncollectible accounts. Estimated Percent of Uncollectible Accounts 3 % The 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 $371,000 31-60 days 139,000 61-90 days 44,000 91-120 days 16,000 More than 120 days 22,000 Total receivables $592,000 9 20 45 75 Aging Class (Number of Days Past Due) 0-30 days Estimated Percent of Uncollectible Accounts 3% Receivables Balance on December 31 $371,000 139,000 44,000 16,000 31-60 days 9 20 61-90 days 91-120 days 45 More than 120 days 22,000 75 Total receivables $592,000 For those amount boxes in which no entry is required, leave the box blank. If an account is not required, select "No entry" from the dropdown box(es) a. Journalize the transactions under the direct write-off method. June 8 Bad Debt Expense Accounts Receivable-Kathy Quantel Aug. 14 Cash Bad Debt Expense Accounts Receivable-Rosalle Oakes Oct. 16-reinstate Accounts Receivable-Kathy Quantet Bad Debt Expense l 111 1 lll I Oct. 16-collection Cash Oct. 16-collection Cash Accounts Receivable-Kathy Quantel Dec 31 write of Bad Debt Expense Accounts Receivable-Wade Dolan Accounts Receivable-Greg Gagne Accounts Receivable Amber Kiske Accounts Receivable-Shannon Poole Accounts Receivable-Nik Spence IIIIIII I 110101 0 Dec. 31-adjusting No entry Ne entry CW b. Journalize the transactions towance method, assuming that the slowance account had a beginning balance of $23,160 te beginning of the year and the company uses the analysis of recentes method Supe Allowance for Doubtful Accounts Accounts Receivable Kathy Quantel Aug 14 Cash June 8 Allowance for Doubl Account Accounts Receivable-Kathy Quantel Cash Aug. 14 Allowance for Doubtful Accounts Accounts Receivable-Rosalie Oakes Oct. 16-reinstate Accounts Receivable-Kathy Quantel Allowance for Doubtful Accounts Cash Oct. 16-collection Accounts Receivable-Kathy Quantel | 100 000000 I I ODI I D IIII I Dec. 31-write-off Allowance for Doubtful Accounts Accounts Receivable-Wade Dolan Accounts Receivable-Greg Gagne Accounts Receivable-Amber Kiskov Accounts Receivable-Shannon Poole Accounts Receivable-Niki Spencev Dec. 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts Dec 31-write-off Allowance for Doubtful Accounts Accounts Receivable-Wade Dolan Accounts Receivable-Greg Gagne Accounts Receivable-Amber Kiskov Accounts Receivable-Shannon Poole v Accounts Receivable-Nikl Spence 000011 ] 111111 Dec. 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts Chery . How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the slowance method Higher by Toda