Exercise 7-4 Percent of sales method; write-off LO P2 At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $647,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $324 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. View transaction list Journal entry worksheet 2 3 4 Record the estimated bad debts expense. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal 1 Record the estimated bad debts expense. 2 Record the entry to write off P. Park's account as uncollectible. 3 Record the reinstatement of Park's previously written off account. 4 Record the cash received on account