When forecasting its finances for the year ahead, Mega Corporation estimates that it will be unable to collect receivables equal to 7% of net sales. In reality, the firms uncollectibles are closer to 1.75% of sales. As a result, Megas estimated assets and

• A :

  expenses will be understated.

• B :

  revenues will be overstated.

• C :

  net income will be overstated.

• D :

  net income will be understated.