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During its first year of operations, Fisher Plumbing Supply Co. had sales of $490,000, wrote off $7,800 of accounts as uncollectible using the direct write-off

During its first year of operations, Fisher Plumbing Supply Co. had sales of $490,000, wrote off $7,800 of accounts as uncollectible using the direct write-off method, and reported net income of $53,900. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/2% of sales would be uncollectible.

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