Ace Computing Company On January 1, Year 1, 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 receivables of $500 written off as uncollected in Year 1. Cash collections of receivables amounted to $78,200. The company estimates that it will be unable to collect 4% of the yearend accounts receivable balance. Question 46 Refer to the information above for Ace Computing Company. What will be the impact of the entry to recognize the writeoff of the specic uncollected accounts? Total assets and shareholders' equity increase. Total assets increase and shareholders' equity decreases. Total assets decrease and shareholders' equity increases. There will be no impact on either total assets or shareholders' equity