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On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $63,400 and $1,300, respectively. During Year 2,

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $63,400 and $1,300, respectively. During Year 2, Kincaid reported $152,000 of credit sales, wrote off $1,200 of receivables as uncollectible, and collected cash from receivables amounting to $161,300. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.
What effect will the entry to recognize the uncollectible accounts expense for Year 2 have on the elements of the financial statements?

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