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At year$-$end December $31,$ Chan Company estimates its bad debts as $0\mathrm{.}50\%$ of its annual credit sales of $$770,000.$ Chan records its bad debts expense for that estimate. On the following February $1,$ Chan decides that the $$385$ 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

$1$

$2$

$3mm$:$4$

Reinstated Park's previously written off account.

Note: Enter debits before credits.