Required information

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On January $1,$ Year $2,$ Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accou balances of $$76,000$ and $$4,000,$ respectively. During Year $2,$ Kincaid reported $$215,000$ of credit sa $$2,100$ of receivables as uncollectible, and collected cash from receivables amounting to $$271,100.$ K that it will be unable to collect one percent $(1\%)$ of credit sales.

hat effect will the entry to recognize the uncollectible accounts expense for Year $2$ have on tfie element tements?

Multiple Choice

Decrease total assets and increase retained earnings.