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Exercise 7-5 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company...

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Exercise 7-5 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 $688,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $344 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 the journal entries for these transactions. Answer is not complete. Genere Credit No 1 Date Dec 31 General Journal Bad debts expense Allowance for doubtful accounts Debit 688,000 X 688,000

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