At year-end (December 31), Chan Company estimates its bad debts as 0.60% of its annual credit sales of $992,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $496 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.

At year-end (December 31), Chan Company estimates its bad debts as 0.60% of its annual credit sales of $992,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $496 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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