On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method of accounting for uncollectible accounts. In February of Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050.

Which of the following answers correctly states the effect of recording the collection of the reestablished receivable on April 4, Year 2?

. . C. D. ABCD Assets 1,050 1,050 = |||||||| = = = Liab. = +++++ Equity 1,050 1,050 Rev. 1,050 Expenses = = (1,050 ) = = Net Inc. 1,050 1,050 Cash Flow 1,050 1,050 1,050