Lail Inc. accounts for bad debts using the allowance method. On June 1, Lail Inc. wrote off Andrew Green's $2,500 account. Based on Lail's estimation, Andrew Green will never pay any portion of the balance in his account. What effect will this write-off have on Lail Inc.'s balance sheet at the time of the write-off? a. An increase to stockholders' equity and a decrease to liabilities. b. No effect. c. An increase to assets and an increase to stockholders' equity. d. A decrease to assets and a decrease to stockholders' equity.