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Use the following information for the Exercises $10-11$ below. $($Algo$)$

$[$The following information applies to the questions displayed below.$]$

At year$-$end December $31,$ Chan Company estimates its bad debts as $1\mathrm{.}00\%$ of its annual credit sales of $$749,000.$ Chan

records its bad debts expense for that estimate. On the following February $1,$ Chan decides that the $$375$ 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.

Exercise $7-10($Algo$)$ Percent of sales method; write$-$off LO P$3$

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.