The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31, 2016:

June	8.	Wrote off account of Kathy Quantel, $8,475.
Aug.	14.	Received $2,960 as partial payment on the $12,480 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible.
Oct.	16.	Received the $8,475 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	$4,625
		Greg Gagne	3,595
		Amber Kisko	7,175
		Shannon Poole	3,025
		Niki Spence	6,650
	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	$324,800	2%
3160 days	109,500	4
6190 days	23,800	11
91120 days	18,200	33
More than 120 days	43,200	80
Total receivables	$519,500

Required:

A.	Journalize the transactions for 2016 under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.
B.	Journalize the transactions for 2016 under the allowance method, assuming that the allowance account had a beginning balance of $35,800 on January 1, 2016, and the company uses the analysis of receivables method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.
C.	How much higher (lower) would Rustic Tables 2016 net income have been under the direct write-off method than under the allowance method?

CHART OF ACCOUNTS

Rustic Tables Company

General Ledger

	ASSETS
110	Cash
111	Petty Cash
121	Accounts Receivable-Wade Dolan
122	Accounts Receivable-Greg Gagne
123	Accounts Receivable-Amber Kisko
124	Accounts Receivable-Rosalie Oakes
125	Accounts Receivable-Shannon Poole
126	Accounts Receivable-Kathy Quantel
127	Accounts Receivable-Niki Spence
129	Allowance for Doubtful Accounts
131	Interest Receivable
132	Notes Receivable
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

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
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	Miscellaneous Expense
710	Interest Expense

A. Journalize the transactions for 2016 under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted PAGE 1 JOURNAL Score: 0/186 DATE DESCRIPTION POST. REF DEBIT CREDIT 10 12 13 14 5