Entries for Uncollectible Receivables, using Allowance Method Journalire the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables May 24 Sold merchandise on account to Old Town Cafe, 612,200. The cost of goods sold was $5,800 Sept. 30 Received $3,200 from Old Town Cafe and wrote of the remainder owed on the sale of May 24 as uncollectible Dec. 7 Reinstated the account of Old Town Cafe that had been written off on September 30 and received 39,000 cash in full payment. If an amount box does not require an entry, leave it blank, May 24-sale Accounts Receivable-Old Town Cafe Sales III May 24-cost Cost of Goods Sold Inventory Sept. 30 Cash Allowance for Doubtful Accounts Accounts Receivable-Old Town Cafe Dec. 7-reinstate Accounts Receivable-Old Town Care Allowance for Doubtful Accounts Dec. 7-collection Cash Accounts Receivable-Old Town Cafe