Response to the following problem:
Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of A1 Kitchen Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:
Jan.31. Received $8,000 on an account and wrote off the remainder owed of $32,000 as uncollectible.
Nov. 2. Reinstated the account that had been written off on January 31 and received $32,000 cash in full payment.