What is the effect on the balance sheet when a company records its estimate for

uncollectible expense $($bad debt expense$)?$

Assets Decrease, Liabilities Remain Unchanged, Equity In$$reases

Assets Remain Unchanged, Liabilities Remain Unchanged, Equity Remains Unchanged

Assets Decrease, Liabilities Remain Unchanged, Equity Decreases

Assets Decrease, Liabilities Decrease, Equity Remains Unchanged