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

question 180

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. The estimated collectible amount of Windsor's accounts receivable in the January 31 balance sheet is:

• A) $321,400.
• B) $340,000.
• C) $322,600.
• D) $347,400.

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Definitions:

Market Sector

A segment of the economy into which large groups of businesses and companies can be categorized based on their business activities.

Deadweight Losses

The loss of economic efficiency that can occur when equilibrium for a good or service is not achieved.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured as a percentage increase in real GDP.

Income Transfers

Transfers of money from one group to another not in exchange for goods or services, typically through government programs aimed at redistributing wealth.