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 Balance Noncollection 0-30 days past due $93,000 1% 31-60 days past due 23,000 2% 61-120 days past due 14,000 5% 121-180 days past due Over 180 days past due 9,000 10% 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 a. General Journal Date Description Debit Credit Dec. 31 Bad Debts Expense To record allowance for credit losses. 0 x $ 0 Allowance for Doubtful Accounts 0 0 x b. General Journal Debit Credit 0 * $ 0 0 0 x Date Description April 10 Allowance for Doubtful Accounts Accounts Receivable - Rose Company To write off Rose Company's account