Name 10. Using the allowance method, prepare the journal entries for the following using proper form: March 2. Sold merchandise on account to Kline Co., $29,000. The cost of the merchandise sold was $17,500. May 5. Received $7,500 from Kline Co. and wrote off the remainder owed on the sale of March 2 as uncollectible October 15. Reinstated the account of Kline Co. that had been written off on May 5 and received $21,500 cash in full payment