On January 1 Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $64.800 and $1,600, respectively. During Year 2, Kincaid reported $159,000 of credit sales, wrote off $1,300 of receivables as uncollectible, and collected cash from receivables amounting to $173,500. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales Which of the following describes the effects of Kincaid's entry to recognize the write-off of the uncollectible accounts? Multiple Choice O Increase assets and stockholders' equity Decrease assets and stockholders' equity Iner s and decrece stockholdendent