Hoff Company uses the allowance method. An account that had been previously written-off as uncollectible was recovered. How do the two parts of the recovery (reinstate receivable and collect the receivable) affect the elements of the financial statements when the two parts are considered together? Has no effect on total assets, total liabilities or stockholders' equity Decrease total liabilities and increase stockholders' equity Increase total assets and decrease total liabilities Increase total assets and stockholders' equity