molly7654
molly7654
09.04.2021 • 
Business

At year-end December 31, Chan Company estimates its bad debts as 0.30% of its annual credit sales of $915,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $458 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. Exercise 7-10 (Algo) Financial statement impact of bad debts expense and write-offs LO P3 Determine the impact of the December 31, February 1, and June 5 transactions on the accounting equation. For each transaction, indicate whether there would be an increase, decrease, or no effect in Assets, Liabilities, and Equity. (Leave no cells blank.)

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