Effect of doubtful accounts on net income

During its first year of operations, Mack's Plumbing Supply had sales of $$350,000,$ wrote off $$5,600$ of accounts as uncollectible using the direct write$-$off method, and reported net income of $$38,500.$ Determine what the net income would have been if the allowance method had been used and the company estimated that $2\%$ of sales would be uncollectible.

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