At year-end December 31, Chan Company estimates its bad debts as 0.20% of its annual credit sales of $972,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $486 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. Exercise 7-10 (Algo) Percent of sales method; write-off LO P3 Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list Journal entry worksheet

At year-end December 31, Chan Company estimates its bad debts as 020% of its annual credit sales of $972,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $486 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 xercise 7-10 (Algo) Percent of sales method; write-off LO P3 Trepare Chan's journal entries to record the transactions of December 31 , February 1, and June 5