One of ABC Ltd.'s customers owing $1,000 has entered liquidation proceedings. Assume that ABC Ltd. applies the allowance method in accounting for bad debts. What would be the impact of the $1,000 on the value of accounts receivable and the allowance for doubtful debts for ABC Ltd.? Select one: O a. Reduce allowance for doubtful debts by $1,000 but no impact on accounts receivable O b. No impact on either allowance for doubtful debts or accounts receivable O c. Reduce accounts receivable by $1,000 but no impact on allowance for doubtful debts O d. Reduce allowance for doubtful debts by $1,000 and reduce accounts receivable by $1,000