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Question: At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual credit sales of $673,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $337 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.
1. Record the estimated bad debts expense.
2. Record the entry to write off P. Park's account as uncollectible.
3. Record the reinstatement of Park's previously written off account.
4. Record the cash received on account.
What is the manufacturing cost markup needed to obtain a target profit of $145,000
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