Effect of doubtful accounts on net income During its first year of operations, Mack's Plumbing Supply Co. had sales of $340,000, wrote off 55,000 of accounts as uncollectible using the dicect write-off method, and reported net income of $37,400 : Assume that during the second year of operations Mack's Plumbing Supply Co. had sales of {408,000, wrote off 56,000 of accounts as unicallectible using the direct writeoff method, and reported net income of $40,800. b. Determine what the batance of the atiowance for doubtful accounts would have been at the fine of the hecond year if the allowance method had been used in beth the first and second years. If required, use the minus sign to indicate a "deble" balance