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In: AccountingAt year-end (December 31), Chan Company estimates its bad debtsas 0.5% of its annual credit...At year-end (December 31), Chan Company estimates its bad debtsas 0.5% of its annual credit sales of $975,000. Chan records itsBad Debts Expense for that estimate. On the following February 1,Chan decides that the $580 account of P. Park is uncollectible andwrites it off as a bad debt. On June 5, Park unexpectedly pays theamount previously written off.Prepare the journal entries for these transactions.Record the estimated bad debts expense.Wrote off P. Park's account as uncollectible.Reinstated Park's previously written off account.Record the cash received on account.
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Accounting
Accounting