Entries for Uncollectible Receivables, using Allowance Method

Journalize 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, $10,600. The cost of goods sold was $7,600.
Sept. 30	Received $2,900 from Old Town Cafe and wrote off 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 $7,700 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
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 Cafe
	Allowance for Doubtful Accounts
Dec. 7-collection	Cash
	Accounts Receivable-Old Town Cafe