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Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31:

Customer	Amount
Kim Abel	$24,300
Lee Drake	30,600
Jenny Green	29,900
Mike Lamb	17,900
Total	$102,700

The company prepared the following aging schedule for its accounts receivable on December 31:

Aging Class (Number of Days Past Due)	Receivables Balance on December 31	Estimated Percent of Uncollectible Accounts
030 days	$730,000	1%
3160 days	290,000	2
6190 days	114,000	15
91120 days	70,000	30
More than 120 days	92,000	60
Total receivables	$1,296,000

A.	Journalize the write-offs under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.
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 $88,300 and the company uses the analysis of receivables method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.
C.	How much higher (lower) would Seaforth Internationals net income have been under the allowance method than under the direct write-off method?

C. How much higher (lower) would Seaforth Internationals net income have been under the allowance method than under the direct write-off method?

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