Chapter 8 Homework 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: Sold merchandise on account to Old Town Cafe, $19,800. The cost of goods sold was $14,300. Received $4,600 from Old Town Cafe and wrote off the remainder owed on the Sept. 30 sale of May 24 as uncollectible. Reinstated the account of Old Town Cafe that had been written off on September 30 and received $15,200 cash in full payment. May 24 Dec. 7 If an amount box does not require an entry, leave it blank. May 24-sale Accounts Receivable-Old Town Cafe Sales May 24-cost Cost of Goods Sold Inventory Sept. 30 Cash Allowance for Doubtful Accounts Accounts Receivable-Old Town Cafe II II III II ID II II III II II Dec. 7-reinstate Accounts Receivable-Old Town Cafe Allowance for Doubtful Accounts Dec. 7-collection Cash Accounts Receivable-Old Town Cafe