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 $98,000 1% 31-60 days past due 28,000 2% 61-120 days past due 19,000 5% 121-180 days past due 14,000 10% Over 180 days past due 12,000 25% $171,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,320 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 $1,225 a. General Journal Description Date Debit Credit Dec.31 A $ 0 $ 0 0 0 To record allowance for credit losses. b. General Journal Description Date Debit Credit April 10 $ 0 $ 0 0 0 To write off Rose Company's account