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: Sold merchandise on account to Old Town Cafe, $10,500. The cost of goods sold was $7,600. Received $2,600 from Old Town Cafe and wrote off the remainder owed on the Sept. 30 sale of May 24 as uncollectible. Reinstated the account of Old Town Cafe that had been written off on Dec September 30 and received $7,900 cash in full payment. May 24 If an amount box does not require an entry, leave it blank. May 24- May 24-cost Sept. 30 Dec.-ritate Dec. 7-collection