Effect of doubthul accounts on net income During its first year of operations, Mack's Plumbing Supply Co. had sales of $330,000, wrote oft $5,300 of accounts as uncollectible using the direct write-0ff method, and reported pet income of $36,300. 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