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, $$27,250.$ The cost of goods sold was $$16,300.$

Sept. $30.$ Received $$10,000$ 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 $$17,250$ cash in full payment.

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

May $24-$sale $$

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May $24-$cost $$

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Sept. $30$

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Dec. $7-$reinstate $$

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