The chief accountant for Sheffield Corporation provides you with the following list of accounts receivable written off in the current year: Sheffield Corporation follows the policy of debiting Bad Debt Expense as accounts are written off. The chief accountant maintains that this procedure is appropriate for financial statement purposes because the internal Revenue Service will not accept other methods for recognizing bad debts. All of Sheffield Corporation's sales are on a 60 -day credit basis. Sales for the current year total \$7,850,000. The balance in Accounts Receivable at year-end is $786,000 and an analysis of customer risk and charge-off experience indicates that 10% of receivables will beuncollectible. (Assume a zero balance in the allowance). (b) By what amount would net income differ if bad debt expense was computed using the percentage-of-receivables approach? Net incorne would be \$ under the percentage-of-receivables approach