Problemat year-end december 31 chan company estimates its, Ask an Expert

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Problem:

At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual credit sales of $894,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $447 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.

Required:

Question: Prepare the journal entries of Chan to record these transactions and events of December 31, February 1, and June 5.

Note: Please show how you came up with the solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163630

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