EX 9-4 Entries for uncollectible receivables, using allowance method OBJ. 4 Journalize the following transactions in the accounts of Arizona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: May 1. Sold merchandise on account to Taiwan Palace Co., $25,800. The cost of the merchandise sold was $15,300. Aug. 30. Received $10,900 from Taiwan Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible. Dec. 8. Reinstated the account of Taiwan Palace Co. that had been written off on August 30 and received $14,900 cash in full payment