Question 7 Drama Corporation uses the allowance method for estimating uncollectible accounts. Required: Prepare journal entries to record the following transactions: January 5 Sold merchandise to Kim K for $1,500, terms n/15. April 15 Received $300 from Kim K on account. August 21 Wrote off as uncollectible the balance of the Kim K account when she declared bankruptcy. October 5 Unexpectedly received a cheque for $350 from Kim K.