Identify the answer that BEST completes the statement or answers the question. Pomona Inc. uses the aging method in accounting for uncollectible accounts. On March 31, the company wrote off a $2,600 account. What effect does the write-off have on the company's financial statements?

Select one:

a. Increases and decreases assets by the same amount of $2,600.

b. Decreases bad debt expense and total assets by $2,600.

c. Increases total assets and decreases shareholders' equity by $2,600.

d. Decreases shareholders' equity and total assets by $2,600.