$176,000 The company handles credit losses uning the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,420 on December 31, before any adjustments Prepare the adjusting entry for estimated credit losses on December 31. b. Prepare the journal entry to write off the Lyons Company's account on April 10 of the following year in the amount of $1.325 General Journal Date Description Credit Description Debt Crede Pe awer at parts of the question 0 Prev Save Answers Exam 4 Chap 8 & 9 Navigation Next O