Required information

Use the following information for the Exercises 9-10 below. (Algo)

Skip to question

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

At year-end December 31, Chan Company estimates its bad debts as 0.90% of its annual credit sales of $923,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $462 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 7-9 (Algo) Percent of sales method; write-off LO P3

Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.