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 $16,800. The cost of goods sold was $12,100. Sept. 30 Received $4,400 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 $12.400 cash in full payment. For a compound transaction, if an amount box does not require an entry, leave it blank. May 24-sale May 24-cost Sept. 30 | 00 00 0 Dec. reinstated Dec. 7-collection