Effect of Doubtful Accounts on Net Income During its first year of operations, Fisher Plumbing Supply Co. had sales of $580,000, wrote off $9,300 of accounts as uncollectible using the direct write off method, and reported net income of $63,800. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/2% of sales would be uncollectible