At year-end (December 31), Chan Company estimates its bad debts as 0.70% of its annual credit sales of $985,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $493 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.

At year-end (December 31), Chan Company estimates its bad debts as 0.70% of its annual credit sales of $985,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $493 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 View journal entry worksheet No Date Debit Credit 1 Dec 31 General Journal Bad debts expense Allowance for doubtful accounts 2 Feb 01 580 Allowance for doubtful accounts Accounts receivableP. Park 580 3 Jun 05 580 Accounts receivableP. Park Allowance for doubtful accounts 580 4 Jun 05 Cash 580 Accounts receivable-P. Park 580