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 $752,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $376 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.

Journal entry worksheet 2 3 4 Record the estimated bad debts expense. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31