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Seaforth Intemational wrote off the following accounts receivable as uncollectible for the year ending December 31 : The company prepared the following aging schedule for

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Seaforth Intemational 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 allowan beginning balance of $90,250 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 write-off method? Seaforth International General Ledger ASSETS 110 Cash 111 Petty Cash 121. Accounts Receivable-Kim Abel 122 Accounts Receivable-Lee Drake 123 Accounts Receivable-Jenny Green 124 Accounts Receivable-Mike Lamb 129 Allowance for Doubfful Acoounts 131 interest Receivable 132 Notes Recelvable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Soid 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscelantous Expense 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends a. On December 31, joumalize the write-ofls under the direct write-off method. b. On December 31 , journalize the writo-offs and the year-end adjusting entry under the allowance method, assuming that the $90,250 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? by

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