- Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning be 590,050 and the company uses the analysis of receivables method. If an amount box does not require an entry, leave it blank. Allowance for Doubtful Accounts 104,550 Accounts Receivable-Kim Abel Accounts Receivable-Lee Drake Accounts Receivable-Jenny Green Accounts Receivable-Mike Lamb 0 24,100 0 32,550 0 > 29,900 0 18,000 104,550 X 0 Bad Debt Expense Allowance for Doubtful Accounts Feedback Check My Work Under the allowance method once a customer account is identified as uncollectible, It is written off against the allowance account. C. How much higher (lower) would Seaforth International's net income have been under the allowance method than under the direct write-off method? Lower Entries for Bed Debt Expense Under the Direct Write-O and Alowance Methods Seaforth International wrote off the following accounts rechiyabi as uncollectible for the year ending December 31: Customer Amount Kim Abel Lee Drake Jenny Green Mike Lamb $24,100 32,550 29,900 18,000 $104,550 Total The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 1% 2 0-30 days 31-60 days 61-90 days 91-120 days $740,000 280,000 113,000 80,000 91,000 35 30 60 More than 120 days Draus Next 31 0-30 days $740,000 1 % 31-60 days 2 280,000 113,000 61.90 days 15 91-120 days 30 80,000 91,000 $1,304,000 More than 120 days Total receivables 60 a. Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank. Bad Debt Expense 104.550 Accounts Receivable-Kim Abel Accounts Receivable-Lee Drake Accounts Receivable-Jenny Green 0 24,100 29.900 Accounts Receivable-Mike Lamb 0 18,000 104.550 0 0 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 $90,050 and the company uses the analysis of receivables method. If an amount box does not require an entry leave it blank Allowance for Doubtful Accounts Accounts Receivable-Kim Abel 24.100 Accounts Receivable-Lee Drake 32.550 Accounts Receivable-Jenny Green o Accounts Receivable-Mike Lamb 0 29.900 0 18,000 104.550 X Bad Debt Expense Allowance for Doubtful Accounts 0 Feedback Check My Won Under the allowance method once a customer account is identified as uncollectible, it is written off against the allowance account, c. How much higher (lower) would Seaforth International's net income have been under the allowance method than under the direct write-off method Lower