EX $9-4$ Entries for uncollectible receivables, using allowance methou

OBJ$\mathrm{.}4$

Journalize the following transactions in the accounts of Arizona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:

May $1.$ Sold merchandise on account to Taiwan Palace Co$.,$ $$25,800.$ The cost of the merchandise sold was $$15,300.$

Aug. $30.$ Received $$10,900$ from Taiwan Palace Co$.$ and wrote off the remainder owed on the sale of May $1$ as uncollectible.

Dec. $8.$ Reinstated the account of Taiwan Palace Co$.$ that had been written off on August $30$ and received $$14,900$ cash in full payment.