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.