Exercise 9-5 Percent of sales method; write-off LO P3 At year-end (December 31). Chan Company estimates its bod debts as 0.20% of its annual credit sales of $897,000. Chan records its Bad Debts Expense for that estimate On the following February 1, Chan decides that the $449 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 in Journal entry worksheet