Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31, 2016: a. Journalize the write-offs for 2016 under the direct...

Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31, 2016:

a. Journalize the write-offs for 2016 under the direct write-off method.

b. Journalize the write-offs for 2016 under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $5,250,000 of credit sales during 2016. Based on past history and industry averages, ¾% of credit sales are expected to be uncollectible.

c. How much higher (lower) would Casebolt Company’s 2016 net income have been under the direct write-off method than under the allowance method?