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At year-end (December 31), Chan Company estimates its bad debts as 0.60% of its annual credit...

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Accounting

At year-end (December 31), Chan Company estimates its bad debtsas 0.60% of its annual credit sales of $665,000. Chan records itsBad Debts Expense for that estimate. On the following February 1,Chan decides that the $333 account of P. Park is uncollectible andwrites it off as a bad debt. On June 5, Park unexpectedly pays theamount previously written off.
Prepare Chan's journal entries for the transactions.

  • Record the estimated bad debts expense.
  • Wrote off P. Park's account as uncollectible.
  • Reinstated Park's previously written off account.
  • Record the cash received on account.

Answer & Explanation Solved by verified expert
4.2 Ratings (876 Votes)
General Journal Dr Cr 1 record the estimated bad debts expenses 31st march Provision for bad and doubtful debts 3990 Debtors 3990 being provision create 06    See Answer
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