! Required information Use the following information for the Exercises 10-11 below. (Algo) [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 $663,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $332 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. Exercise 7-10 (Algo) Percent of sales method; write-off LO P3 Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list View journal entry worksheet Date General Journal No 1 December 31 Debit Credit 59,670
! Required information Use the following information for the Exercises 10-11 below. (Algo) [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 $663,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $332 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. Exercise 7-10 (Algo) Percent of sales method; write-off LO P3 Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list View journal entry worksheet Date General Journal No 1 December 31 Debit Credit 59,670
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
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![!
Required information
Use the following information for the Exercises 10-11 below. (Algo)
[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 $663,000. Chan
records its bad debts expense for that estimate. On the following February 1, Chan decides that the $332 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.
Exercise 7-10 (Algo) Percent of sales method; write-off LO P3
Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.
View transaction list
View journal entry worksheet
Date
General Journal
No
1
December 31
Debit
Credit
59,670](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F19a4ac56-36d7-4808-a803-2dfe72120de9%2Fbb6f58e8-c673-4c48-a664-b93dedee218e%2Fz5x8im_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Use the following information for the Exercises 10-11 below. (Algo)
[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 $663,000. Chan
records its bad debts expense for that estimate. On the following February 1, Chan decides that the $332 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.
Exercise 7-10 (Algo) Percent of sales method; write-off LO P3
Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.
View transaction list
View journal entry worksheet
Date
General Journal
No
1
December 31
Debit
Credit
59,670
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