Answer Happy

Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.40% of its annual credit sales of $802,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $401 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 4 Record the estimated bad debts expense. Date Dec 31 Note: Enter debits before credits. General Journal Debit Credit

Journal entry worksheet < 1 2 3 Date Feb 01 Wrote off P. Park's account as uncollectible. Note: Enter debits before credits. 4 General Journal Debit Credit >

Journal entry worksheet < 1 2 3 Reinstated Park's previously written off account. Note: Enter debits before credits. Date Jun 05 General Journal Debit Credit >

Journal entry worksheet < 1 2 3 Record the cash received on account. Note: Enter debits before credits. Date Jun 05 General Journal Debit Credit