may 24 sold merchandise on account to old town cafe $36,730. the cost of goods sold was $25,310. sept. 30 received $11,950 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 $24,780 cash in full payment. journalize the above transactions in the accounts of zippy interiors company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables.