Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.20% of its annual credit sales of $906,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $453 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.