Use the following information for the Exercises 10-11 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 0.70% of its annual credit sales of $990,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $495 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 P3

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

Dec31 Record the estimated bad debts expense.

Feb 1 Wrote off P. Park's account as uncollectible.

June 5 Reinstated Park's previously written off account.

June 5 Record the cash received on account.