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Problem 1: 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, $15,500. The cost of goods sold was $11,200.Sept. 30 Received $3,100 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 $12,400 cash in full payment.
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