At year-end (December 31), Chan Company estimates its bad debts as 1% of its annual...
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At year-end (December 31), Chan Company estimates its bad debts as 1% of its annual credit sales of $487,500. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $580 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions. 1 2 3 4 Record the estimated bad debts expense. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Wrote off P. Park's account as uncollectible. Note: Enter debits before credits. Date General Journal Debit Credit Feb Reinstated Park's previously written off account. - Note: Enter debits before credits. Date General Journal Debit Credit Jun 05 Record the cash received on account. Note: Enter debits before credits. Date General Journal Debit Credit Jun 05
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