The following selected transactions were taken from the records of Kemper Company for the year ending December 31, 2008:

Feb. 2 Wrote off account of L. Armstrong, $7,250.

May 10 Received $4,150 as partial payment on the $8,500 account of Jill Knapp. Wrote off the remaining balance as uncollectible.

Aug. 12 Received the $7,250 from L. Armstrong, which had been written off on February 2. Reinstated the account and recorded the cash receipt.

Sep. 27 Wrote off the following accounts as uncollectible (record as one journal entry):

Kim Whalen ... $4,400

Brad Johnson .... 2,210

Angelina Quan .... 1,375

Tammy Newsome . 2,850

Donna Short .... 1,690

Dec. 31 The company provided the following aging schedule for its accounts receivable:

a. Journalize the transactions for 2008 under the direct write-off method.
b. Journalize the transactions for 2008 under the allowance method, presuming that the allowance account had a beginning balance of $18,000 and the company uses the analysis of receivables method.
c. How much higher (lower) would Kemper's 2008 net income have been under the direct write-off method than under the allowancemethod?

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Aging Class (Number of Days Past Due) 0-30 days 31-60 days 61-90 days 91-120 days More than 120 days Receivables Balance on December 31 Estimate of the Percentage of Receivables That Will Become Uncollectible $160,000 40,000 18,000 11,000 6,500 Total receivables235,500 3% 10 20 40 75