Effect of Doubtful Accounts on Net Income

During its first year of operations, Mack's Plumbing Supply Co. had sales of $240,000, wrote off $3,800 of accounts as uncollectible using the direct write-off method, and reported net income of $26,400. 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. $

Supply Co. had $240,000 uffs3,800 Lurull mal hud, and $25.400