At year-end December 31, Chan Company estimates its bad debts as 1.00% of its annual credit sales of $866,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $433 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.

1 Record the estimated bad debts expense.

2 Wrote off P. Park's account as uncollectible.

3 Reinstated Park's previously written off account.

4 Record the cash received on account.