The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31 : Apr. 13 Wrote off account of Dean Sheppard, $8,030. May 15 Received $500 as partial payment on the $7,430 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $8,030 from Dean Sheppard, whose account had been written off on April 13. Aeinstated the account and recorded the cash receipt. Dec. 31 Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman Duane DeRosa $2,205 Teresa Galloway 3,510 Ernie Klatt 4,785 1,185 Instructions as uncollectible. July 27 Received $8,030 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31 Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman Duane Dtiosa $2,205 Teresa Galloway 3,510 Emie Klatt 4,785 Marty Richey 1,185 1,710 31 If necessary, record the year-end adjusting entry for uncollectible accounts. B. Joumalize the transactions under the aliowance method Shipway Company uses the percent of credt sales mothod of estimating uncolitctible accounts expense. Based on past history and industry averages, 0.65% of credit sales are expected to be uncollectble. Shipway Compary recorded $4,046,000 of credit sales during for yoar. II no entry is required, simply skip to the next transaction. Fiefer to the Chart of Accounts for exact wording of account biles. Question not attempted. C. How much higher (lower) would Shipway Company's net income have been under the direct write-off method than under the allowance method? by