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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 the year,

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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 the year, Kincaid reported $159,000 of credit sales. Kincaid also wrote off $1,300 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $173,500. 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: Multiple Choice Increase total assets and retained earnings. decrease total assets and increase retained earnings. decrease total assets and net income

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