Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $837000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $419 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. X Answer is not complete. No Date General Journal Debit Credit Dec 31 Bad debts expense 4,185 Allowance for doubtful accounts 4,185 2 Feb 01 Allowance for doubtful accounts 419 Accounts receivable-P. Park 419 3 Jun 05 Sales discounts 419 419 4 Jun 05 Bad debts expense 419 x
Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $837000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $419 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. X Answer is not complete. No Date General Journal Debit Credit Dec 31 Bad debts expense 4,185 Allowance for doubtful accounts 4,185 2 Feb 01 Allowance for doubtful accounts 419 Accounts receivable-P. Park 419 3 Jun 05 Sales discounts 419 419 4 Jun 05 Bad debts expense 419 x
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Exercise 7-6 Percent of sales method; write-off LO P3
At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $837,000. Chan records its
Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $419 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.
X Answer is not complete.
No
Date
General Journal
Debit
Credit
1
Dec 31
Bad debts expense
4,185 O
Allowance for doubtful accounts
4,185 O
2
Feb 01
Allowance for doubtful accounts
419 O
Accounts receivable-P. Park
419
3
Jun 05
Sales discounts
419 O
419
4
Jun 05
Bad debts expense
419
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