Required information [The following information applies to the questions displayed below) 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 Year 2, Kincaid reported $159,000 of credit sales, wrote off $1300 of receivables as uncollectible, and collected cash from receivables amounting to $173,500 Kincaid estimates that it wil be unable to collect one percent (19%) of credit sales, Which of the following describes the effects of writing off the uncollectible accounts? Increase assets and stockholders' equity Increase assets and decrease stockholders' equity Decrease assets and stockholders' equity Does not affect assets or stockholders' equity 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 Year 2, Kincaid reported $159,000 of credit sales, wrote off $1,300 of receivables as uncollectible, and collected cash from receivables amounting to $173,500. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. What effect will recognizing the uncollectible accounts expense for Year 2 have on the elements of the financial statements? Increase total assets and retained earnings Decrease total assets and increase retained earnings h Decrease total assets and net income Increase total assets and decrease net come