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 $90,000 196 31-60 days past due 20,000 296 61-120 days past due 11,000 5% 121-180 days past due 6,000 10% Over 180 days past due 6,000 25% $133,000 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 $650. a. General Journal Description Debit Credit Date Dec.31 Bad Debts Expense 0 x 0 Allowance for Doubtful Ac v 0 0 x To record allowance for credit losses. b. General Journal Description Debit Credit Date April 10 Allowance for Doubtful Acco Accounts Receivable - Rose 0 v 0 x 0 0 x To write off Rose Company's account