need help filling this out please and thank you in advance At year-end (December

Question

need help filling this out please and thank you in advance

At year-end (December 31). Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the 580 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 the journal entries for these transactions Answer is not complete No Date General Journal Debit Credit Dec 31 Bad debts expense Allowance for doubtful accounts Feb 01 Allowance for doubtful accounts 580 Accounts receivableP. Park 580 3 Jun 05 Accounts receivableP. Park Allowance for doubtful accounts 4 Jun 05 Cash Accounts receivableP. Park

Explanation / Answer

Date

Particulars

Debit

Credit

31-Dec

Bad debt expenses ($975,000*0.5%)

$4,875

Allowance for doubtful debts

$4,875

1-Feb

Allowance for doubtful debts

$580

Accounts receivable

$580

5-Jun

Accounts receivable

$580

Allowance for doubtful debts

$580

5-Jun

Cash

$580

Accounts receivable

$580

Please let me know incase of any clarifications

Date

Particulars

Debit

Credit

31-Dec

Bad debt expenses ($975,000*0.5%)

$4,875

Allowance for doubtful debts

$4,875

1-Feb

Allowance for doubtful debts

$580

Accounts receivable

$580

5-Jun

Accounts receivable

$580

Allowance for doubtful debts

$580

5-Jun

Cash

$580

Accounts receivable

$580

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