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, $8,475. 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 Greg Gagne Amber Kisko Shannon Poole Niki Spence $4,625 3,595 7,175 3,025 6,650 31 If necessary, record the year-end adjusting entry for uncollectible accounts. 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 $35,800 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? Rustic Tables Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable-Wade Dolan 122 Accounts Receivable-Greg Gagne EXPENSES 123 Accounts Receivable-Amber Kisko 510 Cost of Merchandise Sold 124 Accounts Receivable-Rosalie Oakes 520 Sales Salaries Expense 125 Accounts Receivable-Shannon Poole 521 Advertising Expense 126 Accounts Receivable-Kathy Quantel 522 Depreciation Expense-Store Equipment 127 Accounts Receivable-Niki Spence 523 Delivery Expense 129 Allowance for Doubtful Accounts 524 Repairs Expense 131 Interest Receivable 529 Selling Expenses 132 Notes Receivable 530 Office Salaries Expense 141 Merchandise Inventory 531 Rent Expense 145 Office Supplies 532 Depreciation Expense-Office Equipment 146 Store Supplies 533 Insurance Expense 151 Prepaid Insurance 534 Office Supplies Expense 181 Land 535 Store Supplies Expense 191 Store Equipment 536 Credit Card Expense 192 Accumulated Depreciation-Store Equipment 537 Cash Short and Over 193 Office Equipment 538 Bad Debt Expense 194 Accumulated Depreciation-Office Equipment 539 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends a. Journalize the transactions under the direct write-off method. All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. Cnro: 271011 c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? by x