The Wallace Corporation started Year Four with $500,000 in its accounts

receivable T-account and an allowance for doubtful accounts of $20,000

(credit balance). During that year, the company made additional sales of

$1.6 million while collecting cash of $1.3 million. In addition, $24,000 inaccounts were written off as uncollectible. Company officials for Wallace

estimated that 4 percent of ending receivables would eventually prove

to be uncollectible based on past history and current economic

conditions. The adjusting entry was prepared and preliminary financial

statements were created. These statements showed net income of

$220,000 and a total for all reported assets of $1.1 million. At the last

moment, on December 31, Year Four, company officials discovered

another receivable of $1,000 that needed to be written off because the

debtor went bankrupt and was liquidated. What should the company report as its net income for the year and as its total for al reported assets as the end of the year?