A2Z Events the Following Data Are from the Company's Records

A2Z Events The following data are from the company's records for 2012:
$\begin{array}{ll} \text {Credit sales during the year } &\$ 2,400,000 \\ \text {Accounts Receivable-December 31, 2012} &410,000 \\ \text {Allowance for Doubtful Accounts-December 31, 2012 } &55,000\\ \text {Bad debt expense for the year } &70,000\end{array}$
-Refer to A2Z Events.What are the effects on the accounting equation when the company makes the adjustment to record bad debt expense using the allowance method?

A) Assets increase and liabilities decrease
B) Assets and stockholders' equity decrease
C) Assets increase and stockholders' equity decreases
D) Assets decrease and stockholders' equity increases