A Company Uses the Allowance Method to Account for Doubtful

A company uses the allowance method to account for doubtful accounts.When will the company's shareholders' equity decrease?

A) on the date a customer's account is written off
B) at the end of the accounting period, when an adjusting entry for bad debts is recorded
C) on the date a customer's account is determined to be uncollected
D) on the date the accounts receivable amount becomes past due