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 Balance Noncollection Age Group 0-30 days past due 31-60 days past due $99,000 1% 2,000 26 61-120 days past due 20,000 5% 121-180 days past due 15,000 10% Over 180 days past due 13,000 $176.000 25% The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,420 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 $1,325 General Journal Date Description Debit Credit Dec 31 Bad Debts Expense To record allowance for credit losses 24 1420 Allowance for Doubtful Accounts 06 1420 x D. Date General Journal Description Debit Credit 1.325 April 10 Alowance for Doubeful Accounts Check Accounts Receivable-Rose Company To write off Rose Company's account 1325