=+EX 9-14 Entries for bad debt expense under the direct write-off and allowance methods obj. 5

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c. $17,200 higher Chapter 9 Receivables 427 During its first year of operations, Master Plumbing Supply Co. had net sales of

$3,500,000, wrote off $50,000 of accounts as uncollectible using the direct write-off method, and reported net income of $390,500. Determine what the net income would have been if the allowance method had been used, and the company estimated that