Question

At year-end (December 31), Chan Company estimates its bad debts as 100% of its annual credit sales of $692,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $346 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. Note Enter debits before credits Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal

Answer 1

Date	Journal entry	Debit Amount	Credit Amount
December 31	Profit and Loss A/c Dr. To Provision for Bad Debts A/c	6920	6920
Feb 01	Provision for doubtful debts A/c Dr. To P. Park A/c	346	346
June 05	P. Park A/c Dr. To Provision for doubtful debts A/c	346	346
June 05	Cash / Bank A/c Dr. To P.Park A/c	346	346