Having a kid work off a debt would be indentured servitude or not?

If some parents have a son who is a bit of a loose cannon and he in some bored prank damages the home and vehicle of an elderly man in the neighborhood. To get the man not to call the cops or get the insurance companies involved they agree that their son will work off the damages at the rate of $8.00 an hour. If the damages to the vehicle was estimated (medium) $1,200 and damage to the house $412 that would mean the kid would have to work off more then $1,500. Even if he worked his tail off most weekends he would still take a long time to even up with “gramps”. Would it not be like a form of indentured servitude? And could the parents legally enter into such an agreement or should the old man just have made a police report and had his or got the boy’s folk’s insurance to pay, and if the county or whatever wanted to punish the boy it would be up to them?