Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Kitchen Depot Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:
July 3 Received $2,500 on an account and wrote off the remainder owed of $11,000 as uncollectible.
Oct. 8 Reinstated the account that had been written off on July 3 and received $11,000 cash in full payment.