Effect of Doubtful Accounts on Net Income During its first year of operations, Fisher Plumbing Supply Co. had sales of $590,000, wrote off $9,400 of accounts as uncollectible using the direct write-off method, and reported net income of $64,900. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/4% of sales would be uncollectible.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Effect of Doubtful Accounts on Net Income)
During its first year of operations, Fisher Plumbing Supply Co. had sales of $590,000, wrote off $9,400 of accounts as uncollectible using the direct write-off method, and
reported net income of $64,900. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/4% of
sales would be uncollectible.
72,275 X
Transcribed Image Text:Effect of Doubtful Accounts on Net Income) During its first year of operations, Fisher Plumbing Supply Co. had sales of $590,000, wrote off $9,400 of accounts as uncollectible using the direct write-off method, and reported net income of $64,900. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/4% of sales would be uncollectible. 72,275 X
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