Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $837000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $419 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. X Answer is not complete. No Date General Journal Debit Credit Dec 31 Bad debts expense 4,185 Allowance for doubtful accounts 4,185 2 Feb 01 Allowance for doubtful accounts 419 Accounts receivable-P. Park 419 3 Jun 05 Sales discounts 419 419 4 Jun 05 Bad debts expense 419 x
Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $837000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $419 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. X Answer is not complete. No Date General Journal Debit Credit Dec 31 Bad debts expense 4,185 Allowance for doubtful accounts 4,185 2 Feb 01 Allowance for doubtful accounts 419 Accounts receivable-P. Park 419 3 Jun 05 Sales discounts 419 419 4 Jun 05 Bad debts expense 419 x
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter8: Receivables
Section: Chapter Questions
Problem 8.3BE: Percent of sales method At the end of the current year, Accounts Receivable has a balance of...
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