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 falled to pay his $1,050 account and the account was written off. On Aprll 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 financlal statements? Multiple Choice Option A Option B Option C Option D