HUJJJDM awarded Required information The following information applies to the questions displayed below.) 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. On February 15, 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. Assume that the Loudoun Corporation uses the direct write-off method. Which of the following correctly describes the effect of the write-off of the customer's account on Loudoun's financial statements? Assets Stk. Equity NA (1,050) NA Rev NA NA stmt of Cash Flows NA NA NA B. 1.050 Net Ine. (1,050) NA (1,050) (1.050) (1,050) NA (1,050) C. D. NA 11.050) NA ..050 Multiple Choice NA NA NA Required information Multiple Choice Option A Option B LOOOO O Option C Option D