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, $3,960. May 15 Recelved $1,980 as partial payment on the $5,270 account of Dan Pyle. Wrote off the remaining balance as uncollectible uly 27 Dec. 31 Wrote off the following accounts as uncollectible (record as one journal entry) Recelived $3,960 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash recelpt. Paul Chapman Duane DeRosa Teresa Galloway Ernie Klatt Marty Richey $2,650 1,980 1,190 1,660 590 Dec. 31 If necessary, record the year-end adjusting entry for the 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