Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods 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, $3,550. May 15. Received $1,780 as partial payment on the $4,720 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $3,550 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): Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts. For those amount boxes in which no entry is required, leave the box blank. If an entry is not required, select "No entry" from the dropdown box(es). a. Journalize the transactions under the direct write-off method. Apr. 13 May 15 July 27-reinstate July 27-collection Dec. 31-write-off Dec. 31-adjusting 3% of credit sales are expected to be uncollectible. Shipway Company recorded $577,400 of credit sales during the year. Apr. 13 May 15 July 27-reinstate July 27-collection Dec. 31-write-off 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 $