During its first year of operations, Mack's Plumbing Effect of doubtful account on Net income Supply Co. had sales of $530,000, wrote off $8,500 of accounts as uncollectible using the direct write-off method, and reported net income of $58,300. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1-3/4% of sales would be uncollectible.