Required: a. Joumalize the transactions under the direct write-olf method. b. Joumalize the transactions under the allowance method. Shipway Company uses the percent of credi sales mothod of estimating uncollectible accounts expense. Based on past history and industry averages, 0.85% of credit sales are expected to be uncollechble. Shipway Company rocorded $3,836,000 of credit saies during the year. c. How much higher (lower) would shipway Company's net income have been under the drect wite-aff method than under the allowance method? A. Joumalize the transictions under the divect writto-off method. b. Joumalze the transactions under the alowance method. Shypway Company uses the percent of credt saies method of estimating uncollecible accounts arpense. Bised on past histo. and indisty averages, 0.85 s or crecit sales are expected to be uncollectblo. Shipway Company recorded $3,836,000 of credir salis chwing for year, c. How much higher (lower) would Shipway Company's net income have been under the direct white-off method than under the allowance method? by