Respuesta :
Answer:
The journal entries is as follows:
Explanation:
December 31 Bad debts expense A/c.............Dr $ 4,875
To Allowance for doubtful accounts......Cr $4,875
February 1 Allowance for doubtful accountsA/c..........Dr $580
To Accounts receivable—P. Park..............Cr $580
June 5 Accounts receivable—P. Park A/c...............Dr $580
To Allowance for doubtful accounts A/c.....Cr $580
June 5 Cash A/c............................ Dr $580
To Accounts receivable—P. Park........Cr $580
Working Note:
December 31
Amount estimated = Annual Credit Sales × 0.5%
= $975,000 × 0.5%
= $4,875
