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, $24,450. The cost of goods sold was $14,500.
Sept. 30	Received $9,000 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 $15,450 cash in full payment.

If an amount box does not require an entry, leave it blank.

May 24-sale	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsCashInventorySalesAccounts Receivable-Old Town Cafe	Accounts Receivable-Old Town Cafe	Accounts Receivable-Old Town Cafe
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCashSalesSales	Sales	Sales
May 24-cost	Accounts Payable-Old Town CafeAllowance for Doubtful AccountsCashCost of Goods SoldInventorySalesCost of Goods Sold	Cost of Goods Sold	Cost of Goods Sold
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsCashCost of Goods SoldInventoryInventory	Inventory	Inventory
Sept. 30	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeBad Debt ExpenseCashCost of Goods SoldInventoryCash	Cash	Cash
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCost of Goods SoldSalesAllowance for Doubtful Accounts	Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCashCost of Goods SoldAccounts Receivable-Old Town Cafe	Accounts Receivable-Old Town Cafe	Accounts Receivable-Old Town Cafe
Dec. 7-reinstate	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCashCost of Goods SoldAccounts Receivable-Old Town Cafe	Accounts Receivable-Old Town Cafe	Accounts Receivable-Old Town Cafe
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCashCost of Goods SoldAllowance for Doubtful Accounts	Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
Dec. 7-collection	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCashSalesCash	Cash	Cash
	Accounts Payable-Old Town CafeAccounts Receivable-Old Town CafeAllowance for Doubtful AccountsBad Debt ExpenseCashInventoryAccounts Receivable-Old Town Cafe	Accounts Receivable-Old Town Cafe	Accounts Receivable-Old Town Cafe