During its first year of operations, Williams Plumbing Supply Co. had net sales of $6,500,000, wrote off
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During its first year of operations, Williams Plumbing Supply Co. had net sales of $6,500,000, wrote off $40,000 of accounts as uncollectible using the direct write-off method, and reported net income of $590,000. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1¾% of net sales would be uncollectible.
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Net income 590000 Wrote off 40000 Net sales 6500...View the full answer
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