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?

Question

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?

Quizplus · Accepted Answer

The uncollectible accounts expense is the difference between the estimated uncollectible amount ($7,400) and the existing allowance ($800), which is $6,600.

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