Brandon Corporation Generated $98,000 in Credit Sales During 20X2

Brandon Corporation generated $98,000 in credit sales during 20X2.In February 20X3,Brandon realized that $13,500 of the accounts receivable generated from the 20X2 credit sales were uncollectible.Brandon seldom experiences bad debts losses; therefore,it used the specific write-off method.Using the matching principle,what is the effect on 20X3 and 20X2 net income as a result of the write-off?

A) 20X3 net income is understated by $13,500,while 20X2 net income is overstated by $13,500.
B) 20X3 net income is overstated by $13,500,while 20X2 net income is understated by $13,500.
C) 20X3 net income is neither overstated nor understated,but 20X2 net income is understated by $13,500.
D) 20X3 net income is overstated by $13,500,but 20X2 net income is neither overstated nor understated.
E) There is no effect on either year's net income as revenues and expenses are properly matched.