lowing 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, $8,360. May 15 Received $470 as partial payment on the $7,120 account, of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27 Recelved \$8.360 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec a. Joumalize the transactions under the direct write-off method. b. Joumalize 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 averagos, 0.85% of credir sales are expected to be uncollectible. Shipway Company recorded $3,836,000 of credit sales during the yoar. c. How much higher (lower) would Shipway Company's net income have been under the direct write-off method than under the allowance method? a. Journaize the transactions under the direct wrile-aft method, b. Jowenalwe the transactions inder the allowance method. Shipway Company uses the porcent of eredil sales method of estimating uncolilctole accounts expense. Basod on past histbry and industry averages, 0. asts of credit sales ere expected to be uncollect ble. Shyway Compary recorded $3,836,000 of credt sates during for yoar c. How much higher (lower) would Shipway Companys net inoome have been under the direct write-ofl method than under the allowance method? by