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omeli [17]
1 year ago
15

During its first year of operations, Mack's Plumbing Supply Co. had sales of $6,740,000, wrote off $48,600 of accounts as uncoll

ectible using the direct write-off method, and reported net income of $712,500. Determine what the net income would have been if the allowance method had been used and the company estimated that 1% of sales would be uncollectible.
Business
1 answer:
BartSMP [9]1 year ago
6 0

The  net income that would have been if the allowance method had been used is:$696,200.

<h3>Net income</h3>

Using this formula

Net income=Net income+Accounts uncollectible-(Sales×Estimated sales rate)

Let plug in the formula

Net income=$715,000+$48,600-($6,740,000×1%)

Net income=$715,000+$48,600-$67,400

Net income=$696,200


Therefore The  net income that would have been if the allowance method had been used is:$696,200.

Learn more about net income here:brainly.com/question/15530787

#SPJ1

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