Credit Losses Based on Accounts Receivable Flag question Miller, 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 Age Group Balance Noncollection 0-30 days past due $94,000 296 31-60 days past due 24,000 5% 61-120 days past due 15,000 10% 121-180 days past due Over 180 days past due 10,000 12% 8,000 $151,000 24% 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. a. Prepare the adjusting entry for estimated credit losses on December 31. b. Prepare the journal entry to write off the Lyons Company's account on April 10 of the following year in the amount of $825 a. Date Dec.31 b. Date April 10 General Journal Description To record allowance for credit losses. General Journal Description To write off Lyons Company's account. Debit Credit $ $ Debit Credit $ $