Effect of Doubtful Accounts on Net Income During its first year of operations, Fisher Plumbing Supply Co. had sales of $620,000, wrote off $9,900 of accounts as uncollectible using the direct write -off method, and reported net income of $68,200. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/4% of sales would be uncollectible. Feedback Check My Work Add the bad debt expense determined by the direct write-off method back to net income. Then, subtract the bad debt expense determined by the allowance method