Effect of doubthul occounts on net income During its first year of operations, Mack's Piumbing Supply. Co, had sales af $400,000, nrote cff $6,000 of accounts as uncollectible ising the di rect a if reported net income of $44,000 Assume that during the second year of operations Mack's Plumbing Supply Co. had sales of $480,000, wrote off 37,200 of accounts as uncollectible uting the direct writeoff method, and reported net income of 548,000 . a. Determine what net income would have been in the secend year if the allowance inethod (using 1% of ales) had been used in both the first and second years. b. Determine what the balance of the allonance for deubthal ackbunti would have been at the end of the second year if the aliowance method had been wed in both the fint and secand years. If required, use the minus sign to indicate a "debit" batance