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

Wrote off account of Kathy Quantel, $8,440. Aug. 14. Received $3,000 as partial payment on the $12,500 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $8,440 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 $4.600 Greg Gagne 3,600 Amber Kisko 7,150 Shannon Poole 2.975 Niki Spence 6.630

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

A screenshot shows records of Rustic Tables Company reads, June 8. Wrote off account of Kathy Quantel, $8,440. Aug. 14. Received $3,000 as partial payment on the $12,500 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $8,440 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 $4,600 Greg Gagne 3,600 Amber Kisko 7,150 Shannon Poole 2,975 Niki Spence 6,630 31. If necessary, record the year-end adjusting entry for uncollectible accounts. Journalize the transactions under the direct write-off method. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning credit balance of $36,000 on January 1 and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable:

Aging Class (Number of Days Past Due) 0-30 days 31-60 days 61-90 days 91-120 days More than 120 days Total receivables Receivables Balance on December 31 $320,000 110,000 24.000 18,000 43.000 5515.000 Estimated Percent of Uncollectible Accounts 1% 10 33 75

A table with three columns-Aging Class (Number of Days Past Due), Receivables Balance on December 31, and Estimated Percent of Uncollectible Accounts is shown. The first row reads 030 days, $ 320,000, and 1%. The second row reads 3160 days, 110,000, and 3. The third row reads 6190 days, 24,000, and 10. The fourth row reads 91120, days 18,000, and 33. The fifth row reads More than 120 days, 43,000, and 75. A single rule is drawn below the amount, 43,000. The sixth row reads Total receivables, $ 515,000 under the second column. A double rule is shown below $ 515,000. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method?