Required information [The following information applies to the questions displayed below.] 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 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. /hich of the following correctly states the effect of Loudoun Company's February Year 2 entry to write off the customer's account