Effect of Doubtful Accounts on Net Income During its first year of operations, Mack's Plumbing Supply Co. had sales of $260,000, wrote off $4,000 of accounts as uncollectible using the direct write-off method, and reported net income of $28,600. Assume that during the second year of operations Mack's Plumbing Supply Co. had sales of $312,000, wrote off $4,800 of accounts as uncollectible using the direct write-off method, and reported net income of $31,200. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1-3/4% of sales would be uncollectible.