! Required information [The following information applies to the questions displayed below.] At year-end December 31,...

Transcribed Image Text:

! Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.40% of its annual credit sales of $738,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $369 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. Check my wo Determine the impact of the December 31, February 1, and June 5 transactions on the accounting equation. For each transaction, indicate whether there would be an increase, decrease, or no effect, for Assets, Liabilities, and Equity. Note: Leave no cells blank. Assets Liabilities Equity December 31 February 1 June 5 ! Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.40% of its annual credit sales of $738,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $369 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. Check my wo Determine the impact of the December 31, February 1, and June 5 transactions on the accounting equation. For each transaction, indicate whether there would be an increase, decrease, or no effect, for Assets, Liabilities, and Equity. Note: Leave no cells blank. Assets Liabilities Equity December 31 February 1 June 5