After coming under fire for its high interest rates and debt collection tactics, Wonga, a payday lending company, recently announced that, as a result of a "voluntary agreement" with the Financial Conduct Authority (FCA), it was writing off £220 million of debts for 330,000 customers. Customers who are behind on their payments, and whose loans would not have been made under the new affordability checks put in place by the company, will have their loans written off. What is the effect of this write-off on Wonga's balance sheet and income statement?