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 $19,000. The cost of goods sold was $13,700.
Sept. 30	Received $4,200 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 $14,800 cash in full payment.

For a compound transaction, if an amount box does not require an entry, leave it blank.

May 24-sale	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeCashCost of Goods SoldInventorySales	- Select -
	Accounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCashCost of Goods SoldSales		- Select -
May 24-cost	Allowance for Doubtful AccountsBad Debt ExpenseCashCost of Goods SoldInventorySales	- Select -
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsCashCost of Goods SoldInventory		- Select -
Sept. 30	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeBad Debt ExpenseCashCost of Goods SoldInventory	- Select -	- Select -
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCost of Goods SoldSales	- Select -	- Select -
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCashCost of Goods Sold	- Select -	- Select -
Dec. 7-reinstated	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseInventorySales	- Select -
	Accounts Receivable-Old Town CafeAccounts Payable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCashSales		- Select -
Dec. 7-collection	Allowance for Doubtful AccountsBad Debt ExpenseCashCost of Goods SoldInventorySales	- Select -
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeBad Debt ExpenseCashInventorySales		- Select -