At year-end (December 31), Chan Company estimates its bad debts as 0.20% of its annual credit sales of $773,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $387 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.

• 1

• Record the estimated bad debts expense.

• 2

  Wrote off P. Park's account as uncollectible.

• 3

  Reinstated Park's previously written off account.

• 4

  Record the cash received on account.