Effect of Doubtful Accounts on Net Income During its first year of operations, Mack’s Plumbing Supply Co. had sales of $410,000, wrote off $6,000 of accounts as uncollectible using the

Effect of Doubtful Accounts on Net Income During its first year of operations, Mack’s Plumbing Supply Co. had sales of $410,000, wrote off $6,000 of accounts as uncollectible using the direct write-off method, and reported net income of $45,100. Assume that during the second year of operations, Mack’s Plumbing Supply Co. had sales of $492,000, wrote off $7,200 of accounts as uncollectible using the direct write-off method, and reported net income of $49,200. 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. $fill in the blank 1 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. $fill in the blank 2

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer