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During its first year of operations, Mack's Plumbing Supply Co. had sales of $610,000, wrote off $9,800 of accounts as uncollectible using the direct write-off
During its first year of operations, Mack's Plumbing Supply Co. had sales of $610,000, wrote off $9,800 of accounts as uncollectible using the direct write-off method, and reported net income of $67,100. 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.
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