In general journal form, prepare journal entries for the following transactions:

Dec. 31 At year-end, Chan Company estimates its bad debt as .5% of its annual credit sles of $900,000.

Feb. 1 Chan decides thst the $600 account of P. Park is uncollectible and writes the account off from the allowance account.

June 5 Park unexpectedly pays the amount previously written off.

Dec. 31 Chan Company decides to use the percent of accounts receivable method to estimate bad debts. On December 31, 2014, it has an outstanding accounts receivable balance of $60,000 and it estimate 1% will be uncollectible. Prepare the adjusting entry to record bad debts expense for the year if the Allowance for doubtful Accounts has (a) a $500 credit balance before adjustment. (b) a $500 debit balance before the adjustment.