Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June Wrote off account of Kathy Quantel, $8,440. 8. Aug. Received $3,000 as partial payment on the $12,500 account of Rosalie Oakes. Wrote off 14. the remaining balance as uncollectible. Oct. Received the $8,440 from Kathy Quantel, whose account had been written off on June 16. 8. Reinstated the account and recorded the cash receipt. Dec. Wrote off the following accounts as uncollectible (record as one journal entry): 31 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. 31. If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Journalize the transactions under the direct write-off method. June 8 Aug. 14 Oct. 16 Oct. 16 Dec. 31 Dec. 31 b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $36,000 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Number Receivables Balance Estimated Percent of of Days Past Due) on December 31 Uncollectible Accounts 0-30 days $320,000 1 % 31-60 days 110,000 61-90 days 24,000 10 91-120 days 18,000 More than 120 days 43,000 Total receivables $515,000 June 8 Aug. 14 Oct. 16 Od. 16 Dec 31 Dec. 31 c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? by 8 more Check My Work uses remaining