At year-end (December 31). Chan Company estimates its bad debts as 0.80% of its annual credit sales of $810,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $405 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. View transaction list Journal entry worksheet Req 1 Reg 2 Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $2,300 credit View transaction list Journal entry worksheet 1 Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $2,300 credit balance. Note: Enter debits before credits Debit Date Credit General Journal Dec. 31 On December 31 of Swift Co.'s first year, $70,000 of accounts receivable is not yet collected. Swift estimates that $4,000 of its accounts receivable is uncollectible and records the year-end adjusting entry. (1) Compute the realizable value of accounts receivable reported on Swift's year-end balance sheet. (2) On January 1 of Swift's second year, it writes off a customer's account for $700. Compute the realizable value of accounts receivable on January 1 after the write-off. Before Write-Off After Write-off Realizable value of accounts receivable Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $65,000 of its accounts receivable from its customer, P. Moore. On October 30, P. Moore unexpectedly pays his account in full to Solstice Company. Record Solstice's entries for recovery of this bad debt. View transaction list Journal entry worksheet