Journal entry worksheet Sal Company determines that it cannot collect its accounts receivable of $3,500 from Joey Company. Note: Enter debits before credits. At year-end December 31, Chan Company estimates its bad debts as 0.80% of its annual credit sales of $855,000. Chan records its bad debts expense for that estimate. On the following February 1. Chan decides that the $428 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. epare Chan's journal entries to record the transactions of December 31, February 1, and June 5. Journal entry worksheet Record the estimated bad debts expense. Note: Enter deblts before credits