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Entries 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 31 Apr. 13. Wrote off account of Dean Sheppard, $6,310. May 15. Received $3,160 as partial payment on the $8,390 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $6,310 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry) Paul Chapman $4,230 Duane DeRosa 3,160 Teresa Galloway Ernie Klatt Marty Richey 1,890 2,650 950 31. If necessary, record the year-end adjusting entry for the uncollectible accounts. If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank a. Journalize the transactions under the direct write-off method. Apr. 13 a. Journalize the transactions under the direct write-off method Apr. 13 May 15 II II II II II II II II July 27 July 27 Dec. 31 Dec. 31 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, 2% of credit sales are expected to be uncollectible. Shipway Company recorded $1,539,400 of credit sales during the year, Apr. 13 May 15 July 27 11 II II July 27 Dec. 31 IllII II II Check My Work 5 more Check My Work Semaining Next