Credit Losses Based on Accounts Receivable At December 31, the Hope Company had a balance of $615,800 in its Accounts Receivable account and a credit balance of $5,600 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $627,200 in debit balances and $11,400 in credit balances. The company aged its accounts as follows:

Credit Losses Based on Accounts Receivable At December 31, the Hope Company had a balance of $615,800 in its Accounts Receivable account and a credit balance of $5,600 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $627,200 in debit balances and $11,400 in credit balances. The company aged its accounts as follows $526,000 58,000 24,400 Over 180 days past due18,800 $627,200 Current 0-60 days past due 61-180 days past due In the past, the company has experienced credit losses as follows: 2% of current balances, 6% of balances 0-60 days past due, 15% of balances 61-180 days past due, and 30% of balances over six months past due. The company bases its allowance for doubtful accounts on an aging analysis of accounts receivable Required a. Prepare the adjusting entry to record the allowance for doubtful accounts for the year. b. Show how Accounts Receivable (including the credit balances) and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet