Entries for uncollectible receivables, using allowance method Journalize the following transactions in the accounts of Dining Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: Apr. 2. Sold merchandise on account to Peking Palace Co., $41, 900. The cost of the merchandise sold was $24, 850. June 9. Received $10,000 from Peking Palace Co. and wrote off the remainder owed on the sale of April 2 as uncollectible. Oct. 31. Reinstated the account of Peking Palace Co. that had been written off on June 9 and received $31.900 cash in full payment. Entries to write off accounts receivable Creative Solutions Company, a computer consulting firm, has decided to write off the $11, 750 balance of an account owed by a customer, Wil Treadwell. Journalize the entry to record the write-off, assuming that (a) the direct write-off method is used and (b) allowance method is used. Providing for doubtful accounts At the end of the current year, the accounts receivable account has a debit balance of $1, 400,000 and sales for the year total $15, 350,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions: a. The allowance account before adjustment has a debit balance of $23,000. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a debit balance of $23,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $125,000. c. The allowance account before adjustment has a credit balance of $14.500. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a credit balance of $14, 500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $180,000