Help S 4 At year end December 31 Chan Company estimates its bad debts as 0.5% of

Question

Help S 4 At year end December 31 Chan Company estimates its bad debts as 0.5% of its annual credit sales of S975000 Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides thet the $580 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. points View transaction list eBook Journal entry worksheet Hint Print Record the estimated bad debts expense. References Noter Enter debits before credrs. General Journal Debit Credit Dec 31 Record entry Clear entry View general journal

Explanation / Answer

Answer

Date Particulars Dr Cr Dec. 31 Bad debts expense accounts $4875 Allowance for doubtful accounts(0.5% of 975000) $4875 Feb 01 Allowance for doubtful accounts $580 Accounts receivable $580 Jun 05 Accounts receivable $580 Allowance for doubtful accounts $580 Jun 05 Cash $580 Accounts receivable $580

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