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The following selected transactions were taken from the records of Lights of the West Company for the first year of its operations ending December , :
Jan. . Wrote off account of J. Huntley, .
Feb. . Received as partial payment on the account of Karlene Solomon. Wrote off the remaining balance as uncollectible.
May . Received from J. Huntley, which had been written off on January . Reinstated the account and recorded the cash receipt.
Nov. . Wrote off the following accounts as uncollectible (record as one journal entry):
Dec. . Lights of the West 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. Lights of the West Company recorded of credit sales during .
How much higher (lower) would Lights of the West Company’s net income have been under the direct write-off method than under the allowance method?