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

question 13

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 income statement approach in estimating uncollectible accounts expense, and uncollectible accounts expense is estimated to be 2% of credit sales. What is the amount of uncollectible accounts expense recognized in Windsor's income statement for January?

• A) $8,000.
• B) $10,000.
• C) $8,700.
• D) $7,200.

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Definitions:

Foreigners

Individuals or entities from one country who are not natives or do not possess citizenship in the host country.

Infant-Industry Argument

The economic rationale that new or emerging industries should be protected from international competition until they become mature and competitive.

Political Pressure

The use of influence or persuasion by individuals or groups, often through lobbying or campaigning, to affect governmental policy or decisions.

Tariff

A tax imposed by a government on imports or exports of goods.