QUESTION 12 AND QUESTION 13 TOGETHER PART I AND II

Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.40% of its annual credit sales of $682,000. Chan records its bad debts expense for that estimate. On the following February 1 , Chan decides that the $341 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 Chan's journal entries to record the transactions of December 31 , February 1 , and June 5. Journal entry worksheet Record the estimated bad debts expense. Note: Enter debits before credits. Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.40% of its annual credit sales of $682,000. Chan records its bad debts expense for that estimate. On the following February 1 , Chan decides that the $341 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. Determine the impact of the December 31, February 1 , and June 5 transactions on the accounting equation. For each transaction, indicate whether there would be an increase, decrease, or no effect, for Assets, Liabilities, and Equity. (Leave no cells blank.)