Question: ABC Inc. accounts for bad debts using the allowance method. On June 1 , ABC Inc. wrote off Andrew Green's $ 2 , 5 0

ABC Inc. accounts for bad debts using the allowance method. On June 1, ABC Inc. wrote off Andrew Green's $2,500 account. Based on ABC's estimation, Andrew Green will never pay any portion of the balance in his account. What effect will this write-off have on ABC Inc.'s balance sheet at the time of the write-off?
Group of answer choices
An increase to stockholders' equity and a decrease to liabilities.
None of the above.
An increase to assets and an increase to stockholders' equity.
A decrease to assets and a decrease to stockholders' equity

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