Requlred Information

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

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

At year$-$end December $31.$ Chan Company estimates its bad debts as $1\%$ of its annual credit sales of $$487,500.$ 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.

Exerclse $9-10($Static$)$ 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.