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, $10,000. The cost of goods sold was $7,200. Sept. 30 Received $2,200 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible. Reinstated the account of Old Town Cafe that had been written off on September 30 and received $7,800 cash in full Dec. 7 payment. If an amount box does not require an entry, leave it blank. May 24-sale Accounts Payable-Old Town Cafe Accounts Receivable-Old Town Cafe May 24- Allowance for Doubtful Accounts Cash Sept. 30 Inventory Sales II II III II II Dec. 7-reinstate Dec. 7-collection