1. At year-end (December 31), Chan Company estimates its bad debts as 0.40% of its annual credit sales of $604,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $302 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.

journal entry attached partially filled out

Prepare the journal entries for these transactions.

2.

At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2015, it has outstanding accounts receivable of $62,000, and it estimates that 5% will be uncollectible.

Prepare the adjusting entry to record bad debts expense for year 2015 under the assumption that the Allowance for Doubtful Accounts has:
(a)	a $1,054 credit balance before the adjustment.
(b)	a $310 debit balance before the adjustment.

general journalentry attached below partially filled out