At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan...

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Extracted text: At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan de- cides that the $580 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park un- expectedly pays the amount previously written off. Prepare the journal entries of Chan to record these transactions and events of December 31, February 1, and June 5.