credit Losses Based on Accounts Receivable Aging Hunter, 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: Considered Age Group Balance Uncollectible 0-30 days past due 590,000 1% 31-60 days past due 20,000 24 61-120 days past due 11,000 5% 121-180 days past due 6,000 10% Over 180 days past due 4000 25 5131,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $520 on December 31, before any adjustments. Support a. Determine the amount of the adjustment for estimated credit losses on December 31. $ 0 b. Determine the financial statement effect of a write off of the Rose Company's account on April 10 of the following year in the amount of $425. Use negative signs with answers, when appropriate la transaction increases and decreases the same Balance Sheet category, enter the increase amount in the first row and the decrease amount directly below in the second row) Balance Sheet Income Statement Stockholders Liabilities Equity Expenses - Net Income 0 Ats b. Determine the financial statement effect of a write off of the Rose Company's account on April 10 of the following year in the amount of $425. Use negative signs with answers, when appropriate. If a transaction increases and decreases the same Balance Sheet category, enter the increase amount in the first row and the decrease amount directly below (in the second row). Balance Sheet Income Statement Stockholders Assets Liabilities Equity Revenues Expenses - Net Income 0 0 0 0 0 0 0 0 0 Check Previous Save Answers Next