Exercise 9-6 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 $629,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $315 account of P. Park is uncollectible and writes it off as a bad debt. On June 5. Park unexpectedly pays the amount previously written oft Prepare Chan's journal entries for the transactions. @ ER! View transaction list View journal entry worksheet No General Journal 1 Dec 31 Bad debts expense Allowance for doubtful accounts Date Debit Credit IN 2 Feb 01 Allowance for doubtful accounts Accounts receivable-P. Park Jun 05 Accounts receivable-P. Park Allowance for doubtful accounts 4 Jun 05 Cash Accounts receivable-P. Park