E $6-5$ Uncollectible receivables, using allowance method

Obj. $4$

Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Kitchen Depot Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:

July $3$ Received $$2,500$ on an account and wrote off the remainder owed of $$11,000$ as uncollectible.

Oct. $8$ Reinstated the account that had been written off on July $3$ and received $$11,000$ cash in full payment.