Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31). Chan Company estimates its bad debts as 0.20% of its annual credit sales of $623,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $312 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 Journal entry worksheet 2 3 4 Record the estimated bad debts expense. Not: E r debits before credits General Journal Debit Credit Dec 31 Clery View general Journal