Entries for Uncollectible Receivables, using Allowance Method Joumalize the following transactions in the accounts of Sedona Interiors Company, a Restaurant Supply Company that uses the allowance method of accounting for uncollectible receivables: May 1. Sold merchandise on account to Beljing Palace Co, $12,400. The cost of the merchandise sold was $8,900. Aug. 30. Received $3,300 from Beijing Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible. Dec. 8. Reinstated the account of Beijing Palace Co. that had been written off on August 30 and received $9,100 cash in full payment. For a compound transaction, if an amount box does not require an entry, leave it blank