Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount J. Jackson $10,000 L. Stanton 9,500 C. Barton 13,100...

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

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

b.Journalize the write-offs for the current year under the allowance method. Also, journalize the adjusting entry for uncollectible receivables assuming the company made $2,400,000 of credit sales during the year and, based on the industry average, the company expects uncollectible receivables to be 1.5% of credit sales.

c.How much higher or lower would Morry Company's net income have been under the direct write-off method than under the allowance method?