Under the Allowance Method, the year-end entry to record bad debts has the following effect on the financial statements: Select one. a. Decreases liabilities and decreases assets b. Decreases assets and increases equity c. Increases expenses and increases a contra asset d. Has no effect on net income or net assets nder the allowance method of recording bad debts, what is the effect of writing off a specific customer's account that has been determined to be uncollectible? Select one: a. Has no effect on Bad Debt Expense b. Decreases the net realizable value of Accounts Receivable c. Increases the net realizable value of Accounts Receivable d. Increases the Allowance for Doubtful Accounts