Required information [The following information applies to the questions displayed below.] At year-end December 31,...
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Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.90% of its annual credit sales of $972,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $486 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. Determine the impact of the December 31 , February 1, and June 5 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
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