Ace Computing Company on January 1,2012,the Accounts Receivable and the Allowance

Ace Computing Company On January 1,2012,the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $40,000 and $1,500 respectively.During the year,the company reported $80,000 of credit sales.There were $500 of receivables written off as uncollected in 2012.Cash collections of receivables amounted to $78,200.The company estimates that it will be unable to collect 4% of the year-end accounts receivable balance.
-Refer to the Ace Computing Company.The entry to recognize the write-off of the specific uncollected accounts will act to:

A) Increase total assets and stockholders' equity
B) Increase total assets and decrease stockholders' equity
C) Decrease total assets and stockholders' equity
D) Not affect total assets or stockholders' equity