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At yearend December Chan Company estimates its bad debts as of its annual credit sales of
$ Chan records its bad debts expense for that estimate. On the following February Chan
decides that the $ account of P Park is uncollectible and writes it off as a bad debt. On June Park
unexpectedly pays the amount previously written off.
Determine the impact of the December February and June transactions on the accounting equation. For each
transaction, indicate whether there would be an increase, decrease, or no effect, for Assets, Liabilities, and Equity.
Note: Leave no cells blank.
