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During its first year of operations, Sampson's Cosmetics International had sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using the direct write-off

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During its first year of operations, Sampson's Cosmetics International had sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using the direct write-off method, and re-ported net income of $487,500. Determine what the net income would have been if the allowance method had been used and the company estimated that 1% of sales would be uncollectible.

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