3. 1. How frequently should entities remeasure the allowance for credit losses? 2. Describe the journal entry that would be required to increase an existing allowance account balance, and cite the paragraph supporting your response. What is a write-off of a financial asset, and how does the accounting for this event differ from the accounting for an allowance account adjustment? Now consider this scenario. Assume a company maintains an accounts receivable aging sched- ule and historical data showing that, on average, 7% of its receivables that are 1-30 days past due will not be collected. The company believes the economy has improved relative to its histori- cal information and that it should reduce this expected loss rate by 5%. 4. Using the preceding excerpts from ASC 326-20, comment on whether a reduction to the company's expected loss percentage may be appropriate.