At year-end December 31, Chan Company estimates its bad debts as 0.80% of its annual credit sales of $825,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $413 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.