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:

Date	Transaction
May 24.	Sold merchandise on account to Old Town Cafe, $11,200. The cost of goods sold was $8,100.
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 $8,300 cash in full payment.

If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
May 24-sale
May 24-cost
Sept. 30
Dec. 7-reinstate
Dec. 7-collection