EX 8-13 Entries for bad debt expense under the direct write-off and allowance methods The following selected transactions were taken from the records first year of its operations ending December 31 $8,225 higher of Shipway Company for the Ape 13 Wrote off account of Dean Sheppard, $8.450 May 15 Received 5500 as partial paymeest on the $7,100 account of Dan Pye Whote of the remaining balance as dy 27 Received $8.450 from Dean Sheppard, whose account had been writen off on Apri 13.nad the account and recorded the cash receipt Dec. 31. Wirote off the folowing accounts as uncollectible recoed as one journal entry Paul Chapman Duane DeRosa Teresa Galloway Ernie Klatt Marty Richey 52.225 3550 4770 1 273 1690 31. if necessary, record the year end adjusting entry for uncolectible accounts A Journalize the transactions under the dinect write-off method B. Journalize the transactions under the allowance method Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 54% of credit sales are expected to be uncollectible Shipway recorded $3,778,000 of credit sales during the year C How much higher dower) would Shipway Company's net income have been under the direct write-off method than under the allowance method EX 8-14 Entries for bad debt expense under the direct write-off and allowance Obi s methods The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31 Ane w tr account of Kathy QuanteL saw Aug 4ceved $3,000 as partial payment on the $12 500 account of Rsae kes Wtoff the emining balance as un Oct 16 Received the 58 440 from Kathy Quantel whose account had Lenwtn off on Jue tated the account and recorded the cash recept 54800 Wade Dolan Greg Gagne Amber Ksko Shannon Poole Nai Spence necessary recod the year end adijusting entry for /Continued EX 8-13 Entries for bad debt expense under the direct write-off and allowance methods The following selected transactions were taken from the records first year of its operations ending December 31 $8,225 higher of Shipway Company for the Ape 13 Wrote off account of Dean Sheppard, $8.450 May 15 Received 5500 as partial paymeest on the $7,100 account of Dan Pye Whote of the remaining balance as dy 27 Received $8.450 from Dean Sheppard, whose account had been writen off on Apri 13.nad the account and recorded the cash receipt Dec. 31. Wirote off the folowing accounts as uncollectible recoed as one journal entry Paul Chapman Duane DeRosa Teresa Galloway Ernie Klatt Marty Richey 52.225 3550 4770 1 273 1690 31. if necessary, record the year end adjusting entry for uncolectible accounts A Journalize the transactions under the dinect write-off method B. Journalize the transactions under the allowance method Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 54% of credit sales are expected to be uncollectible Shipway recorded $3,778,000 of credit sales during the year C How much higher dower) would Shipway Company's net income have been under the direct write-off method than under the allowance method EX 8-14 Entries for bad debt expense under the direct write-off and allowance Obi s methods The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31 Ane w tr account of Kathy QuanteL saw Aug 4ceved $3,000 as partial payment on the $12 500 account of Rsae kes Wtoff the emining balance as un Oct 16 Received the 58 440 from Kathy Quantel whose account had Lenwtn off on Jue tated the account and recorded the cash recept 54800 Wade Dolan Greg Gagne Amber Ksko Shannon Poole Nai Spence necessary recod the year end adijusting entry for /Continued