The following information is available for Kettler Company, which uses the allowance method of accounting for uncollectible accounts. Kettler estimated that 1% of sales on account will be uncollectible. After several attempts at collection, Kettler wrote off an account of $440 that could not be collected.
Required: Prepare journal entries for the following events:
a) 2013 service revenue
b) 2013 collections on account
c) Write-off of the uncollectible account
d) Uncollectible accounts expense for 2013

Question

The following information is available for Kettler Company, which uses the allowance method of accounting for uncollectible accounts.  Kettler estimated that 1% of sales on account will be uncollectible. After several attempts at collection, Kettler wrote off an account of $440 that could not be collected.
Required: Prepare journal entries for the following events:
a) 2013 service revenue
b) 2013 collections on account
c) Write-off of the uncollectible account
d) Uncollectible accounts expense for 2013

Quizplus · Accepted Answer

The Answer of The following information is available for Kettler Company, which uses the allowance method of accounting for uncollectible accounts.  Kettler estimated that 1% of sales on account will be uncollectible. After several attempts at collection, Kettler wrote off an account of $440 that could not be collected.
Required: Prepare journal entries for the following events:
a) 2013 service revenue
b) 2013 collections on account
c) Write-off of the uncollectible account
d) Uncollectible accounts expense for 2013

The Following Information Is Available for Kettler Company, Which Uses