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573,100 Determine what net income would have been in the second year if the allowance method (using 11/4% of sales) had been used in both the first and second years. X x Feedback - Check My Wark a. Add the bad debt expense determined by the direct write-off method back to net income. Then, subtract the bad debt expense determined by the allowance method. from these respective figures and add the differences together to see what the allowance balance at year 2 would have been