Business Course Return to course Credit Losses Based on Accounts Receivable Maxell, Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible Probability of Balance Noncollection Age Group 0-30 days past due $140,000 1% 31-40 days past due 22,000 3% 61-120 days past due 24.000 6% 121-180 days past due 11,000 10% Over 180 days past due 6,000 $303,000 20% The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,240 on December 31, before any adjustments. a Prepare the adjusting entry for estimated credit losses on December 31, b. Prepare the journal entry to write off the Porter Company's account on May 12 of the following year in the amount of $880 Date DC31 General Journal Description Debit Credit Te record allowance for credit loses General Journal Date May 12 Description Debit Credit 625 Cear Tawse off Porter Company's account O Search the web L 14