A firm, using the allowance method of recording credit losses, wrote off a customer's account in the amount of \(\$ 500\). Later, the customer paid the account. The firm reinstated the account by means of a journal entry and then recorded the collection. What is the result of these procedures?

a. Increases total assets by \(\$ 500\)

b. Decreases total assets by \(\$ 500\)

c. Decreases total assets by \(\$ 1,000\)

d. Has no effect on total assets