Credit Losses Based on Accounts Receivable At December 31, the Hope Company had a balance of $622,000 in its accounts receivable account and a credit balance of $7,500 in the allowance for doubtful accounts account. The company has aged its accounts as follows Current 0-60 days past due 61-180 days past due $524,000 56,000 25,200 Over 180 days past due 6,800 $622,000 In the past, the company has experienced credit losses as follows: one percent of current balances, six percent of balances 0-60 days past due, 18 percent of balances 61-180 days past due, and 30 percent of balances more than six months past due. The company bases its allowance for doubtful accounts on an aging analysis of accounts receivable Required a. Prepare the adjusting journal entry to record the provision for credit losses for the year b. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on the December 31 balance sheet. General Journal Date Description Debit Credit Dec.31 To record allowance for credit losses. b. Do not use negative signs with your answers Current Assets