Exercise 9-5 Percent of sales method; write-off LO P3 At year-end (December 31, Chan Company estimates its bad debts as 0.60% of its annual credit sales of $731,000, Chan records ts Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $366 account of P. Park is pays the amount previously written off Prepare the journal entries for these transactions. Journal entry worksheet Record the estimated bad debts expense.