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At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual credit sales of $753,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $377 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 of Chan to record these transactions and events of December 31, February 1, and June 5.
1. Record the estimated bad debts expense.2. Record the write off an account.3. Record reinstatement of an account.4. Record the cash received on account.
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