TB MC Qu$.07-68($Static$)$ On December $31,$ Year $1,$ the Loudoun Corporation...

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.$

Which of the following correctly states the effect of Loudoun Company writing off the customer's account?

$\backslash$table$[[,$Balance Sheet,Income Statement,$\backslash$table$[[$Statement$],[$of Cash$],[$Flows$]]],[,$Cash,$\backslash$table$[[$Net$],[$Realizable$],[+,$ Value$]],\backslash$table$[[$Accounts$],[$Payable$]],+,\backslash$table$[[$Common$],[$Stock$]],+,\backslash$table$[[$Retained$],[$Earnings$]],$Revenue,$-,$Expense,$=$ Net,Income$],[$a$.,$NA$,$NA$,$NA$,,$NA$,,$NA$,$NA$,$E$,$NA$,,$NA$,$NA$],[$b$.,$NA$,(1,050),$NA$,,$NA$,,(1,050),(1,050),,$NA$,,,050,$NA$],[$c$.,$NA$,(1,050),(1,050),,$NA$,,$NA$,$NA$,,$NA$,,$NA$,$NA$],[$d$.,$NA$,$NA$,1,050,,(1,050),,$NA$,$NA$,,(1,050),,,050,$NA$]]$

Multiple Choice

Option A

Option D