Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.40% of its annual credit sales of $861,000. Chan records Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $431 account of P. Park is uncollectible an 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. Note: Enter debits before credits Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal