Smith & Sons uses the allowance method of recording credit losses. The company wrote off one customer's account in the amount of $1,000 that was subsequently collected. The company reinstated the account and then recorded the collection. What is the result of these procedures?

a. Increase total assets by $1,000

b. Decrease total assets by $1,000

c. Decrease total assets by $2,000

d. There is no effect on total assets.

Please do not copy from Chegg. Only attempt if you are sure about the answer. Solve in a step by step manner, explaining each step.