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?

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The uncollectible accounts expense is calculated as 2% of credit sales. If the credit sales for January are $400,000, then 2% of $400,000 is $8,000.

Windsor Uses the Income Statement Approach in Estimating Uncollectible Accounts