Credit Losses Based on Accounts Receivable Graham, 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 Age Group 0-30 days past due 31-60 days past due Probability of Balance Noncollection $190,000 1% 27,000 366 61-120 days past due 29.000 6% 121-180 days past due 16.000 10% Over 180 days past due 11,000 $273,000 20% The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,740 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 Matthews Company's account on April 10 of the following year in the amount of $1,380 Date Dec 31 Date April 10 General Journal Description Debit Credit To record allowance for credit loses General Journal Description Debit Credit Bad Debts Expense Allowance for Doubtful Accounts Accounts Receivable-Matthews Company SaveAnswers Previous