Entries for Uncallectibie Receivables, using Allowance Method Journalize the following transactions in the accounts of zippy Interiors Company, a reataurant supply company that uses the allowance method of accounting for uncollectible recelvables: May 24 Sold merchandise on account to Old Town Cafe, \$12,800. The cost of goods sold was \$9,200. Sept. 30 Received $3,300 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncolloctible. Dec: 7 Reinstated the account of Old Town Cafe that had been written off on September 30 and received $9,500 cash in full payment