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York City estimated 2 percent of its water utility's monthly billings would be uncollectible. During the year, the County water utility wrote off several accounts

York City estimated 2 percent of its water utility's monthly billings would be uncollectible. During the year, the County water utility wrote off several accounts receivable. Assuming the 2 percent estimated is still deemed to be appropriate at year-end, what effect will the recording of an allowance for estimated uncollectable accounts receivable and the subsequent write-offs have on the following water utility accounts?
Revenues Expenses
a. Decrease Increase
b. Decrease No effect
c. No effect Increase
d. No effect No effect

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