Problem 8: Accounts Receivable At year-end December 31, Chan Company estimates its bad debts as 1% of its annual credit sales of $487,50000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $580 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. Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. 0 Total $570,000 Days Past Due 31 to 60 61 to 90 $36.000 $18,000 5% 7% Accounts receivable Percent uncollectible 1 to 30 $90,000 2% $396,000 1% Over 90 $30,000 10% a. Calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method. b. Prepare the journal entries of Chan to record these transactions and events of December 31, February 1, and June 5