The following selected transactions were taken from the records of Rustic Tables Company for the year ending December $31$:

June $8$ Wrote off account of Kathy Quantel, $$8,445.$

Aug. $14$ Received $$3,025$ as partial payment on the $$12,520$ account of Rosalie Oakes. Wrote off the remaining balance as uncollectible.

Oct. $16$ Received the $$8,445$ from Kathy Quantel, whose account had been written off on June $8.$ Reinstated the account and recorded the cash receipt.

Dec. $31$ Wrote off the following accounts as uncollectible $($record as one journal entry$)$:

Wade Dolan $$4,590$

Greg Gagne $3,630$

Amber Kisko $7,150$

Shannon Poole $2,950$

Niki Spence $6,625$

$31$ If necessary, record the year$-$end adjusting entry for uncollectible accounts.

Rustic Tables Company prepared the following aging schedule for its accounts receivable:

Aging Class $($Number of Days Past Due$)$ Receivables Balance on December $31$ Estimated Percent of Uncollectible Accounts

$030$ days $$323,3001\%$

$3160$ days $112,8003$

$6190$ days $23,10012$

$91120$ days $17,60035$

More than $120$ days $42,00070$

Total receivables $$518,800$

Required:

a$.$ Journalize the transactions under the direct write$-$off method.

b$.$ Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $$36,400$ and the company uses the analysis of receivables method.

c$.$ How much higher $($lower$)$ would Rustic Tables$$ net income have been under the direct write$-$off method than under the allowance method?