Atyear end (December 31) Chan Company estimates its bad debts as 0.5% of its ann

Question

Atyear end (December 31) Chan Company estimates its bad debts as 0.5% of its annual credit sales of Exercise 9-5 $975,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan de Percent of sales cides that the $580 account of P expectedly pays the amount previously written off. Park is uncollectible and writes it off as a bad debt. On June 5, Park un- write-off P3 Prepare the journal entries of Chan to record these transactions and events of December 31, February1 and June 5.

Explanation / Answer

Journal entry :

date accounts & explanation debit credit Dec 31 Bad debt expenses a/c 4875      Allowance for doubtful accounts a/c 4875 (To record adjusting entry) Feb 1 Allowance for doubtful accounts a/c-P.Park a/c 580     Account receivable a/c - P.Park a/c 580 (To record write off) June 5 Account receivable a/c - P.Park a/c 580        Allowance for doubtful accounts a/c-P.Park a/c 580 (To record debtors account reinstated) Cash a/c 580       Account receivable a/c - P.Park a/c 580 (To record amount received)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.