Seaforth International wrote Off The following Accounts receivable as Uncollectible For the Year Ending December 31:

Customer Amount Kim Abel $24,400 LeeDrake 30,700 Jenny Green 29,800 Mike Lamb 17,800 Total $102,700

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 030 days $735,000 1% 3160 days 290,000 2% 6190 days 115,000 15% 91120 days 70,000 30% More than 120 days 92,000 60% Total receivables $1,302,000

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 allowance account had a beginning balance of $88,600 and the company uses the analysis of receivables method.

c How much higher (lower) would Seaforth Internationals net income have been under the allowance method than under the direct write-off method?