Please include your calculations, especially for the unadjusted trial balance and bad debt expense! Thank you for your help.

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, $8,450. May 15. Received $500 as partial payment on the $7,100 account of Dan Pyle. Wrote off the remaining balance as uncollectible. Received $8,450 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash July 27 receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman $2,225 Duane DeRosa 3,550 Teresa Galloway 4,770 Ernie Klatt 1,275 Marty Richey 1,690 31. If necessary, record the year-end adjusting entry for uncollectible accounts. If no entry is required, select "No entry" and leave the amount boxes blank. For compound entries, if an amount box does not require an lahlan a. Journalize the transactions under the direct write-off method. Apr. 13 Bad Debt Expense Accounts Receivable-Dean Sheppard 8,450 8.450 May 15 500 Cash Bad Debt Expense Accounts Receivable-Dan Pyle 6,600 7.100 8,450 July 27-reinstate Accounts Receivable-Dean Sheppard Bad Debt Expense 8,450 8,450 July 27-collection Cash Accounts Receivable-Dean Sheppard 8,450 Dec. 31-write-off Bad Debt Expense 13,510 Accounts Receivable-Paul Chapman 2.225 Accounts Receivable-Duane DeRosa 3.550 4,770 Accounts Receivable-Teresa Galloway Accounts Receivable-Ernie klatt Accounts Receivable-Marty Richey 1,275 1,690 Dec. 31-adjusting Feedback b. Journalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, %% of credit sales are expected to be uncollectible. Shipway Company recorded $3,778,000 of credit sales during the year.. Apr. 13 May 15 III July 27-reinstate July 27-collection Dec. 31-write-off II IIIIII I Dec. 31-adjusting 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 $