Jacobs Company issued bonds with a $188,000 face value on January 1 Yeart. The bonds were issued at 105 and carried a year term to maturity. They had a 8% stated rate of interest that was payable in cash on December 31st of each year. Jacobs uses the straight-line method to more bond discounts and premiums. Based on this information alone, how does the recognition of interest expense during Year 1 affect the company's accounting equation? On January 1. Year 2 Grande Company had a $12,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2. Grande provided $60,000 of service on account. The company collected $56,500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account What is the amount of uncollectible accounts expense recognized on the Year 2 income statement? Multiple Choice $1.200 $1,130 5240