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, $$27,250.$ The cost of goods sold was $$16,300.$ Sept. $30$ Received $$10,000$ from Old Town Cafe and wrote off the remainder owed on the sale of May $24$ as uncollectible. Dec. $7$ Reinstated the account of Old Town Cafe that had been written off on September $30$ and received $$17,250$ cash in full payment.