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 foiled 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? Balance Sheet Income Statement + A. B. C. D. Asset 1,050 (1,050) (1,050) (1,050) (1,050) Liabilities NA NA NA Statement of CE Plovs NA NA Stockholders Equity NA (1,050) (1,050) (1,050) Revenue NA NA NA NA Net Income NA (1,050) NA (1,050) Expenses NA 1.050 NA 1,050 (1.050) OA NA