EX 84 Entries for uncollectible receivables, using allowance method OBJ. 4 Journalize the following transactions in the accounts of Dining Interiors Company, a res- taurant 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 mer chandise 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