Apr. 2. June 9. Oct. 31. Accounting 1A Class Assignment Chapter 8 -Receivables Sold merchandise on account to Peking Palace Co., $36,730. The cost of the goods sold was $25,310. Received $11,950 from Peking Palace Co. and wrote off the remainder owed on the sale of April 2 as uncollectible. Reinstated the account of Peking Palace Co. that had been written off on June 9 and received $24,780 cash in full payment. Journalize the above transactions in the accounts of Dining Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. Date 1 2 3 4 5 6 GENERAL JOURNAL Description Page Post: ref Debit Credit 1 234567 7 8 9 10 11 12 13 14 15 16 8 9 10 11 12 13 14. 15 16 On January 1, the Allowance for Doubtful Accounts had a balance of $10,000. December 31 Accounts Receivable balance $1,000.000. Sales for the year $15,000,000. Calculate the bad debt expense and the balance in the allowance account using the following assumptions: Receivables method: 2% % of Sales: .1%