At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. 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 the journal entries for these transactions. View transaction list Journal entry worksheet 1 2 3 4 Record the estimated bad debts expense Note: Enter debits before credits. General Journal Date Debit Credit Dec 31 Record entry Clear entry View general journal
At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. 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 the journal entries for these transactions. View transaction list Journal entry worksheet 1 2 3 4 Record the estimated bad debts expense Note: Enter debits before credits. General Journal Date Debit Credit Dec 31 Record entry Clear entry View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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![At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. 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 the journal entries for these transactions.
View transaction list
Journal entry worksheet
1
2
3
4
Record the estimated bad debts expense
Note: Enter debits before credits.
General Journal
Date
Debit
Credit
Dec 31
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b868480-07f0-4513-b0e4-403d75e281f6%2Fe1ea3696-f36c-49e6-86c3-c9479f93ec16%2Fuwbs14e.png&w=3840&q=75)
Transcribed Image Text:At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. 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 the journal entries for these transactions.
View transaction list
Journal entry worksheet
1
2
3
4
Record the estimated bad debts expense
Note: Enter debits before credits.
General Journal
Date
Debit
Credit
Dec 31
Record entry
Clear entry
View general journal
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