2 Required information The following information applies to the questions displayed below) On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $71,800 and $3,100, respectively. During Year 2, Kincaid reported $194,000 of credit sales, wrote off $1,800 of receivables as uncollectible, and collected cash from receivables amounting to $234,500 Kincaid estimates that it will be unable to collect one percent (1of credit sales Part 2 of 2 8 points 00 14:43 What effect will recognizing the uncollectible accounts expense for Year 2 have on the elements of the financial statements? Multiple Choice Increase total assets and retained earnings Decrease total assets and increase retained earnings ME Grow Mill What effect will recognizing the uncollectible accounts expense for Year 2 have on the elements of the financial statements? 2 of 2 Multiple Choice Increase total assets and retained earnings 20:39:26 Decrease total assets and increase retained earnings Decrease total assets and net income O Increase total assets and decrease net income