I must enter something for line 14 and 15.

It Cannot be "No Entry"

The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31:

June	8	Wrote off account of Kathy Quantel, $8,475.
Aug.	14	Received $2,960 as partial payment on the $12,480 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible.
Oct.	16	Received the $8,475 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt.
Dec.	31	Wrote off the following accounts as uncollectible (record as one journal entry):
		Wade Dolan	$4,625
		Greg Gagne	3,595
		Amber Kisko	7,175
		Shannon Poole	3,025
		Niki Spence	6,650
	31	If necessary, record the year-end adjusting entry for uncollectible accounts.

Rustic Tables Company prepared the following aging schedule for its accounts receivable:

Aging Class (Number of Days Past Due)	Receivables Balance on December 31	Estimated Percent of Uncollectible Accounts
030 days	$324,800	2%
3160 days	109,500	4
6190 days	23,800	11
91120 days	18,200	33
More than 120 days	43,200	80
Total receivables	$519,500

Required:

	a. Journalize the transactions under the direct write-off method.
	b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $35,800 and the company uses the analysis of receivables method.
	c. How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the allowance method?