At year-end (December 31), Chan Company estimates its bad debts as 0.40% of its annual credit...

At year-end (December 31), Chan Company estimates its bad debts as 0.40% of its annual credit sales of $879,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $440 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.

Expert Solution

Bad debt expense = .40% of 879000 = $3516 to be recorded on year end

JOURNAL

Date	Account	Debit	Credit
31-Dec	Bad-debt expenses	$ 3,516
	Allowance for uncollectbles		$ 3,516
	(Being provision for bad debts recorded)
1-Feb	Allowance for uncollectibles	$ 440
	Account Receivable-P. Park		$ 440
	(being bad debt recorded )
5-Jun	Account Receivable-P. Park	$ 440
	Allowance for uncollectible		$ 440
	(Being bad debt earlier recorded reversed)
5-Jun	Cash	$ 440
	Account Receivable-P. Park		$ 440
	(being cash received from P.Park)

All the best

FEEL FREE TO ASK ANY CLARIFICATION IF REQUIRED KINDLY

HIT THUMBS UP IF SATISFIED IT WILL BE HIGHLY APPRECIATED

Best efforts are made to provide best answer still some error may creep in if something such happens kindly let me know i ll correct the error.

THANK YOU

ekkarill92 answered 5 months ago

At year-end December 31, Chan Company estimates its bad debts as 0.20% of its annual credit...

At year-end December 31, Chan Company estimates its bad debts as 0.20% of its annual credit sales of $603,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $302 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 to record the transactions of December 31, February 1, and June 5. Record...

At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit...

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. Record the estimated bad debts expense. Wrote off P. Park's...

At year-end (December 31), Chan Company estimates its bad debts as 0.60% of its annual credit...

At year-end (December 31), Chan Company estimates its bad debts as 0.60% of its annual credit sales of $665,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $333 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. Record the estimated bad debts expense. Wrote off P. Park's...

Assuming the company estimates bad debts at an amount equal to 2% of credit sales.

The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales. 1. Calculate bad debt expenses for the year. 2. Calculate the year-end balance in the...

Zillmann Company sells goods on credit and estimates bad debts as a percentage of Account receivable,...

Zillmann Company sells goods on credit and estimates bad debts as a percentage of Account receivable, the credit period is 30 days .The Company has three customers following are the details of the Receivables at Dec-31, 2017 from these customers and the respective date when sales were made. Name of customers Date of Sales Account Receivables Alexander Nov-01,2017 $ 10,000 Dec-15,2017 $ 12,000 Blair Sep-10,2017 $ 16,000 Oct-25,2017 $ 41,000 Chase Aug-15,2017 $ 40,000 Required: Which approach of recording bad...

Q1 [The following information applies to the questions displayed below.] At year-end December 31, Chan Company...

Q1 [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.40% of its annual credit sales of $759,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $380 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 to record the...

Estimating Bad Debts Expense and Reporting Receivables At December 31, Barber Company had a balance of...

Estimating Bad Debts Expense and Reporting Receivables At December 31, Barber Company had a balance of $294,000 in its accounts receivable and an unused balance of $1,820 in its allowance for uncollectible accounts. The company then aged its accounts as follows. Current$242,200 1–60 days past due33,600 61–180 days past due11,900 Over 180 days past due6,300 Total accounts receivable$294,000 The company has experienced losses as follows: 1% of current balances, 5% of balances 1–60 days past due, 15% of balances 61–180...

Schreiber Industries estimates bad debts at 2% of sales. Schreiber began the year with $270,000 of...

Schreiber Industries estimates bad debts at 2% of sales. Schreiber began the year with $270,000 of account receivable and $38,600 of allowance of bad debts. During the year, Schreiber had sales of $920,000, wrote off bad debts of $26,000, and received cash on account of $905,000. What amount of accounts receivable, net allowance for bad debts, should appear on the year-end balance sheet?

Manilow Company in an industry that has a high rate of bad debts. Before any year-end...

Manilow Company in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Manilow's Accounts Receivable account was $593,900 and Allowance for Doubtful Accounts had a credit balance of $40,480. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. 1. What is the appropriate balance for Allowance for Doubtful Accounts at year-end? 2. Show how accounts receivable would be presented...

You are performing an annual audit of a company with a December 31, 20X1 year-end. Your...

You are performing an annual audit of a company with a December 31, 20X1 year-end. Your firm is planning to complete the audit on March 1, 20X2 and release the report on March 31, 20X2. On March 15, 20X2, two material subsequent events occur: • A fire caused extensive damage to the company’s manufacturing plant in New Jersey. • A large customer went bankrupt. At December 31, 20X1, the Company had a receivable of $2,500,000 from this customer; at December...

Question