Answer:
Refer to the below for explanation.
Explanation:
December 31,
Amount estimated = Annual credit sales × 0.30.%
= $931,000 × 0.30%
= $2,793
Please see journal entries below;
December 31, Bad debts expense A/c ....................Dr. $2,793
To allowance for doubtful accounts .......Cr $2,793
February 1, Allowance for doubtful A/c........ Dr. $466
To accounts receivable P.Park..........Cr $466
June 5, Accounts receivable P. Park account......... Dr $466
To allowance for doubtful accounts......... Cr $466
June 5,. Cash A/c..... Dr $466
To accounts receivable P.Park.............Cr $466