Entries for Bed 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 313 Apr 13 Wrote of account of Dean Sheppard, $2,580 May 15 Received $1,290 as partial payment on the $3,430 account of Dan Pyle. Wrote off the remaining balance as uncollectible Received $2,580 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash July 27 receipt Dec 31 Wrote off the following accounts as uncollectible (record as one journal entry) Paul Chapman $1,730 Duane DeRosa 1,290 Teresa Galloway 770 Ernie Klatt Marty Richey 390 Dec 31 if necessary, record the year and adjusting entry for the uncollectible accounts. 1.080 For those amount boxes in which no entry is required, leave the box blank. If an entry is not required, select "No entry from the dropdown box(es) .. Journalize the transactions under the direct write-off method. Ar 13 May 15 Previous Next July 27-reinstate I July 27.collection Dec 31-write-off w1 Dec. 31-adjusting b. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense, Based on past history and Industry averages, 1% or credit sales are expected to be uncollectible. Shipway Company recorded $1,258,000 of credit sales during the yoar, Journalize the transactions under the allowance method Apr. 13 May 15 Read Maps May 15 July 27.reinstate In N11 . III July 27-collection Dec. 3 write-off Dec 31 adjusting How much higher lower would Showay Company's net income have been under the direct write-off method than under the allowance method by Previous Next