262 Chapter 6 Recoivables and Inventories E6-4 Uncollectible accounts, using direct write-off method Illustrate the efects on the accounts and financial statements of the following transactions in the accounts of Valley Care & Supplies Co., a local hospital supply company that uses the direct write-off method of accounting for uncollectible receivables: b), 3 March 18 Recelved $5,000 on an account and wrote off the remainder owed of $10,000 as uncollectible. Aug. 29 Reinstated the account that had been written off on March 18 and received $10,000 cash in full payment. Uncollectible receivables, using allowance method E6-5 Obj. 4 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 al- lowance 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 recelved $11,000 cash in full payment