Accounting Problems

Help

Save & Exit

ork mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate

Return to

At year$-$end December $31,$ Chan Company estimates its bad debts as $0\mathrm{.}20\%$ of its annual credit sales of $$751,000.$ Chan records its bad debts expense for that estimate. On the following February $1,$ Chan decides that the $$376$ 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.

Exercise $9-10($Algo$)$ Percent of sales method; write$-$off LO P$3$

Prepare Chan's journal entries to record the transactions of December $31,$ February $1,$ and June $5.$

Answer is complete but not entirely correct.

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[1,$December $31,$Bad debts expense,$(,150,200,],[,,$Allowance for doubtful accounts,$(,,150,200$