2. ESL Corporation uses the allowance method of accounting for bad debts. In April, ESL's management determined that a major customer was bankrupt and wrote off the customer's $8,000 account. This write off

a. decreases the net accounts receivable and decreases net income.

b. increases the net accounts receivable and increases net income.

c. decreases the net accounts receivable but does not affect net income.

d. decreases net income but does not affect net accounts receivable.

e. does not affect the net accounts receivable or the net income.

Can someone explain why the answer is E ???