EX 8-18 Entries for bad debt expense under the direct write-off and allowance Obj. 5 methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: The company prepared the following aging schedule for its accounts receivable on December 31: a. Journalize the write-offs under the direct write-off method. b. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning balance of $89,000 and the company uses the analysis of receivables method. c. How much higher (lower) would Seaforth International's net income have been under the allowance method than under the direct write-off method