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: May 24 Sold merchandise on account to Old Town Cafe, $12,200. The cost of goods sold was $8,800. Sept. 30 Received $3,200 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 $9,000 cash in full payment. 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 II II III II II II II III II II Accounts Receivable-Old Town Cafe Dec. 7-reinstate Accounts Recolvable-Old Town Cafe Allowance for Doubtful Accounts Dec. 7-collection Cash Accounts Receivable-Old Town Cafe