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Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit
Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $863,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $432 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 1 3 4 ances Record the estimated bad debts expense. Note: Enter bits before credits Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $863,000 Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $432 account of P. Park is 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 3 4 Wrote off P. Park's account as uncollectible. Note: Enter debits before credits. General Journal Dobit Credit Date Feb 01 Record entry Clear entry View general Journal Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31). Chan Company estimates its bad debts as 0.50% of its annual credit sales of $863,000. Chan rec Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $432 account of P. Park is uncollecti 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 >
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