Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $837,000. Chan records its Bad Debts...

Extracted text: Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $837,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $419 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. Prepare Chan's journal entries for the transactions. View transaction list Journal entry worksheet 1 2 3 <> Record the estimated bad debts expense. es Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal