At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $604,000. Chan records its Bad Debts Expense

At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales
of $604,000. 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 the journal entries of Chan to record these transactions and events of December 31, February
1, and June 5.

On August 2, 2013, Jun Co. receives a $6,000, 90-0ay, 12% note from customer Ryan Albany as
payment on his $6,000 account.
Prepare the journal entry assuming the note is honored by the customer on October 31, 2013. (Use
360 days a year.)