Credit Losses Based on Accounts Receivable 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: Probability of Age Group 0-30 days past due Balance Noncollection 31-60 days past due $93,000 23.000 196 2% 61-120 days past due 14,000 596 121-180 days past due 9,000 1096 Over 180 days past due 7,000 $146,000 25% The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $820 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 Rose Company's account on April 10 of the following year in the amount of $725 Date Dec.31 General Journal Description Debit Credit # $ 05 0 0 0 b. To record allowance for credit losses. Date April 10 General Journal Description Debit Credit $ 05 0 To write off Rose Company's account. DO 4 13