7 Q 5

At year-end (December 31), Chan Company estimates its bad debts as 070% of its annual credit sales of $888,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $444 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