Effect of Dout Accounts in Net Income During its first year of operations, Mack's Pumbing Supply Co. had sales of $520,000, wrote off $8,000 of accounts as uncollectible using the direct write-off methad, and reported net income of $57-200, Assume that Buring the second year of operations, Mack's Pumbing Supply Co. had sales of $624,000, wrote off $9,600 of accounts as uncollectible using the direct write-off method, and reported net income of $52.300 Determine what net income would have been in the second year if the allowance method (using 1-3/4% of sales) had been used in both the first and second years termine what the balance of the ance for outful accounts would have been at the end of the second year if the allowance method had been sand in both the first and second years. affect of Doubtful Accounts on Net Income During its first year operations, Mack's Plumbing Supply Co. had sales of $520,000, wrote off $8,000 of accounts as uncollectible using the direct write-off method, and raportet net come of $57,200. Assume that during the second year of operations, Mack's Plumbing Supply Co. had sales of $624,000, wrote off $9,600 of accounts as uncollectible using the direct wine-off method, and reported net me of $52,300 Determine what net income would have been in the second year if the allowance method using 1-3/4% of sales) had been used in both the first and sand years b. Determine what the balance of the ance for doubt accounts would have been at the end of the second year if the allowance method had been used on both the first and and years Effect of Doubtful Accounts on Net Income During its first year of operations, Mack's Plumbing Supply Co. had sales of $520,000, wrote off $8,000 of accounts as uncollectible using the direct write-off method, and reported net income of $57,200. Assume that during the second year of operations, Mack's Plumbing Supply Co. had sales of $624,000, wrote off $9,600 of accounts as uncollectible using the direct write-off method, and reported net income of $62,300. a. Determine what net income would have been in the second year if the allowance method (using 1-3/4% of sales) had been used in both the first and second years. > b. Determine what the balance of the allowance for doubtful accounts would have been at the end of the second year if the allowance method had been used in both the first and second years