Entries for Uncollectible Receivables, using Allowance Method Journalize 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 Beijing Palace Co., $12,500. The cost of the merchandise sold was $9,000 Aug. 30. Received $3,500 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 $9,000 cash in full payment, For a compound transaction, if an amount box does not require an entry, leave it blank. May 1-sale May 1-cost o Aug. 30 Ill Dec. 8-reinstated