Effect of Doubtful Accounts on Net Income During its first year of operations, Fisher Plumbing Supply Co. had sales of $430,000, wrote off $6,900 of accounts as uncollectible using the direct write-off method, and reported net income of $47,300. Determine what the outcome, would have been if the allowance method had been used, and the company estimated that 1 1/2% of sales would be uncollectible