Warner Company's year-end unadjusted trial balance shows accounts receivable of $108,000, allowance for doubtful accounts of $690

Warner Company's year-end unadjusted trial balance shows accounts receivable of $108,000, allowance for doubtful accounts of $690 (credit), and sales of $370,000. Uncollectibles are estimated to be 0.50% of sales.

Prepare the December 31 year-end adjusting entry for uncollectibles.

No	Date	General Journal	Debit	Credit
1	Dec 31	Bad debts expenseselected answer correct	1,850selected answer correct	not attempted
		Allowance for doubtful accountsselected answer correct	not attempted	1,850selected answer correct

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8.

At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $846,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $423 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.

No	Date	General Journal	Debit	Credit
1	Dec 31	Bad debts expenseselected answer correct	4,230selected answer correct	not attempted
		Allowance for doubtful accountsselected answer correct	not attempted	4,230selected answer correct
2	Feb 01	Allowance for doubtful accountsselected answer correct	423selected answer correct	not attempted
		Accounts receivable—P. Parkselected answer correct	not attempted	423selected answer correct
3	Jun 05	Accounts receivable—P. Parkselected answer correct	423selected answer correct	not attempted
		Allowance for doubtful accountsselected answer correct	not attempted	423selected answer correct
4	Jun 05	Cashselected answer correct	423selected answer correct	not attempted
		Accounts receivable—P. Parkselected answer correct	not attempted	423