Exercise 7-4 Percent of sales method; write-off LO P2 At year.nd (December 31). Chan Company estimates its bad debts as 0 50% of its annual credit sales of 673.000 Chan records its Bad Debts Expense decides that the $337 account of P Park is uncollectible and wntes it off as a bad debt On June 5. Park unexpectedly pays the amount previously witten off Chan records its Bad Debts Expense for that estimate On the following February 1, Chan Prepare the journal entries for these transactions 3 Answer is complete but not entirely correct. No Date General Journal Debit Credit Dec 31 Bad debts expense 4.752 Allowance for doubtful accounts 4,752 Feb 01 Allowance for doubtful accounts 300 390 Accounts receivable-P Park 39e Jun 05 Accounts receivable-P Park 306 Allowance for doubtful accounts 398 3 Jun 05 Cash 300 0 Accounts receivable-P Park 396