Entries for Uncollectible Receivables, using Allowance Method

May $24$ Sold merchandise on account to Old Town Cafe $$12,900.$ The cost of goods sold was $$9,300.$

Sept. $30$ Received $$3,500$ 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 $$9,400$ cash in full payment.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Sept. $30$

Dec. $7-$reinstated Accounts Receivable$-$Old Town Cafe $$

Allowance for Doubtful Accounts $,vv$

Dec. $7-$collection

Accounts Receivable$-$Old Town Cafe $$