On January 1, Year 2 Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $68,200 and $2.300, respectively. During Year 2, Kincaid reported $176,000 of credit sales, wrote off $1,550 of receivables as uncollectible, and collected cash from receivables amounting to $203,300. Kincaid estimates that It will be unable to collect one percent (1%) of credit sales. 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 Decrease total assets and net Income Increase total assets and decrease net income