The Following Information Is Available for Kettler Company, Which Uses

question 58

Essay

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

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Definitions:

Grooming Habits

Practices and activities related to personal care and cleanliness, including habits for maintaining appearance and hygiene.

Personalization

Distortion of thinking in which a person takes responsibility or blame for events that are unconnected to the person.

Overgeneralization

Distortion of thinking in which a person draws sweeping conclusions based on only one incident or event and applies those conclusions to events that are unrelated to the original; the tendency to interpret a single negative event as a never-ending pattern of defeat and failure.

Extinction

The process through which a conditioned response is weakened by presenting the conditioned stimulus without the unconditioned stimulus, eventually leading to the response disappearing.