for Bad 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 off account of Dean Sheppard, $6,900. May 15 Received $3,450 as partial payment on the $9,180 account of Dan Pyle. Wrote off the remaining balance as uncollectible. Received $6,900 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 $4,620 Duane DeRosa 3,450 Teresa Galloway 2,070 Ernie klatt 2,900 Marty Richey 1,040 Dec 31 if necessary, record the year-end adjusting entry for the uncollectible accounts. 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). a. Journalize the transactions under the direct write-off method, Apr. 13 May 15 ml July 27-reinstate Previous Ne July 27.reinstate July 27-collection Dec. 31-write off lll I INI D 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, 2% of credit sales are expected to be uncollectible. Shipway Company recorded $1,683,900 of credit sales during the year. Joumalize the transactions under the allowance method Apr 13 Press Next b. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on post history and industry averages, 2% of credit sales are expected to be uncollectible. Shipway Company recorded $1,683,900 of credit sales during the year. Journalize the transactions under the allowance method. Apr. 13 May 15 July 27.reinstate July 27-collection all [ 11 ] 00000 100 Dec 31-write-off Dec. 31-adjusting Previous > Next Dec. 31-adjusting . How much higher (lower) would Shipway Company's net income have been under the direct write-off method than under the allowance method by Newt