on janurary 1, year 2, kincaid companys account receivable and the allowance for doubtful accounts carried balances of $75,200 and $3,800 respectively. during year 2, kincaid reported $211,000 of credit sales, wrote off $2,050 of receivables as uncollectible, and collected cash from receivables amounting to $264,300. kincaid estimates that it will be able to collect one percent of credit sales. which of the following describes the effects of writing off the uncollectible accounts?

A) decrease assets and stockholders equity

B) increase assets and stockholders equity

C) increase assets and decrease stockholders equity

D) does not affect assets or stockholders equity