On January 1, Year 2 Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $70,400 and $2,800, respectively. During the year, Kincaid reported $187,000 of credit sales. Kincade also wrote off $1,700 of receivables as uncollectible in Year 2. Cash collected of receivables amounted to $222,300. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.

Kincaid's entry required to recognize the uncollectible accounts expense for Year 2 will:

A. Increase total assets and retained earnings

B. Decreased total assets and increase retained earnings

C. decrease total assets and net income

D. increse total assets and decrease net income