Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank. 

b. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning balance of $92,800 and the company uses the analysis of receivables method. If an amount box does not require an entry, leave it blank.

c. How much higher (lower) would Seaforth International's net income have been under the allowance method than under the direct write-off method?

 

Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Kim Abel Lee Drake Jenny Green Mike Lambi Total Amount $24,400 35,300 29,800 17,600 $107,100 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) 0-30 days 31-60 days 61-90 days 91-120 days More than 120 days Total receivables Receivables Balance on December 31 $735,000 300,000 115,000 80,000 94,000 $1,324,000 Estimated Percent of Uncollectible Accounts 1% 2 15 30 60