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, $7,290. May 15. Recelved $3,650 as partial payment on the $9,700 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $7,290 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): 31. If necessary, record the year-end adjusting entry for the uncollectible accounts. 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-or method, b. Journalize the transactions under the aliowance method. Shibway Company uses the percent of credi sales method of estimsting uncellectible accounts expense. Based on past history arid industry arverages, 2\% of credit saies are expected to be uncollect ble. Shipway Company recorded $1,776,200 of credt sales during the year. Apc13 c. How much higher (lower) would Shipway Companys net income have been under the direct write-orf method than under the aliowance method? by 1 x