At the End of January, the Unadjusted Trial Balance of Windsor

question 147

Multiple Choice

At the end of January, the unadjusted trial balance of Windsor Limited included the following accounts:
$\begin{array} { | l | r | r | } \hline & \text { Debit } & { \text { Credit } } \\\hline \text { Sales } ( 80 \% \text { represent credit sales) } & & \$ 500,000 \\\hline \text { Accounts Receivable } & \$ 340,000 & \\\hline \text { Allowance for Doubtful Accounts } & & \$ 800 \\\hline\end{array}$

-Refer to the above data. Windsor uses the balance sheet approach in estimating uncollectible accounts expense, and aging the accounts receivable indicates the estimated uncollectible portion to be $7,400. What is the amount of uncollectible accounts expense recognized in Windsor's income statement for January?

• A) $7,400.
• B) $6,600
• C) $8,200.
• D) Some other amount.

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