Effect of doubtful accounts on net income. During its first year of operations, fisher plumbing supply Co. had sales of $2,780,000, wrote off $16,000 of accounts as uncollectible using the direct write-off method and reported net income of $120,000. 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 $

On april 1, santa fe, inc. paid griffith publishing company $2,448 for 36-month subscriptions to several different magazines. santa fe debited the prepayment to a prepaid subscriptions account, and the subscriptions started immediately. what amount should appear in the prepaid subscription account for santa fe, inc. after adjustments on december 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made?