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? Balance Sheet Income Statement A. B. C. D. Assets 1,050 (1,050) 1,050 1,050 1,050 (1,050) Liabilities + n/a n/a n/a n/a Stockholders Equity n/a 1,050 1,050 n/a Revenue n/a 1,050 n/a n/a Expense n/a n/a (1,050) n/a Multiple Choice