The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr 13 May 15 July 27 Dec 31. Wroto of account of Dean Sheppard, $8,700, Received $420 as partial payment on the $6,960 account of Dan Pylo. Wrote off the remaining balanco as uncollectible. Received $8,700 from Dean Sheppard, whose account had boon written off on April 13. Holnntated the account and recorded the cash receipt. Wroto off the following accounts as uncollectible (record as one journal entry): Paul Chapman Duane DeRosa Teresa Galloway Emie Klott Marty Richoy 31. If necessary, record the year-end adjusting entry for uncollectible accounts. $2,060 3,545 4,775 1,300 1.605 Required: A. Joumaize the transactions under the direct writo-of method. I no entry is required, simply skip to the next transaction. Poser to the Chart of Accounts for exact wording of account ttles. B. Joumaize the transactions under the allowance method. Shipway Company uses the percent of credit salos method of estimating uncollectible accounts expense. Based on past history and industry averages, 0.75% of credit sales are expected to be uncollectible. Shipway Company recorded $4,018,000 of credit calos during the year I no entry is required simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account sites DESCRIPTION POSE REE DERIT DATE CREDIT ASSETS WEETS LANTIS EQUITY 1 2 3 10 12 11 30 B. Journalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollocable accounts expense. Based on pust history and industry averages, 0.75% of cradle sales are expected to be suncollectible, Shipway Company recorded $4.018,000 of credit sales during the yout. I no entry is required simply skip to the next transaction. Rotor to the Chart of Accounts for exact wording of account non IMGK 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POSE DERIT CREDIT ASSETS LATES QUITY 2 3 LE C. How much higher (lower) wouler Shipway Company's net income have been under the direct writo-oft method than under the allowance method? by