eBook Show Me How Calculator Entries for uncollectible receivables, using allowance method Instructions Chart of Accounts Journal Instructions May 24 Sept 30 Sold merchandise on account to Old Town Cafe $44,710. The cost of the goods sold was $26,090. Received $10,390 from Old Town Cate and wrote off the remainder owed on the sale of May 24 as uncollectible. Reinstated the account of Old Town Cafe that had been written off on September 30 and received $34,320 cash in full payment. Dec. 7 Journalize the above transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. Refer to the Chart of Accounts for exact wording of account titles.