On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $66,200 and $1,900, respectively. During Year 2, Kincald reported $166,000 of credit sales, wrote off $1,400 of receivables as uncollectible, and collected cash from receivables amounting to $185,700. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. Which of the following describes the effects of Kincald's entry to recognize the write-off of the uncollectible accounts? Multiple Choice Increase assets and stockholders' equity Increase assets and decrease stockholders equity Decrease assets and stockholders' equity Does not affect assets or stockholders equity