If Tim Hortons uses the allowance method to account for bad debts, when will the Companys Stockholders Equity decrease?

Select one:

a. The Stockholders Equity will never decrease

b. When a customer pays off their account

c. At the date a customers account is written off

d. At the end of the accounting period when an adjusting entry for bad debts is recorded

e. When the accounts receivable amount becomes past due