Management uses the ageing approach method to calculate the allowance for doubtful debts. An analysis of the ageing of accounts receivable shows a substantial increase in the accounts receivable in the over 90 days category. Management does not adjust the allowance for doubtful debts at year-end. As a result: Select one: a. assets are understated and net income is understated. b. assets are understated and net income is overstated. c. assets are overstated and net income is overstated. d. assets are overstated and net income is understated.