Credit Losses Based on Accounts Receivable Marvel , 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 $100,000 31-60 days past due 20.000 29 61-120 days past due 20,000 121-180 days past due 9,000 115 Over 180 days past due 2,000 20 5151.000 6 The company handles credit losses with the allowance method. The credit balance of the Allowance for Doubtful Accounts is $840 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 Porter Company's account on the following May 12, in the amount of 5680. General Journal Date Description Dec 31 Bad Debts Expense Allowance for Doubtful Accounts To record allowance for credit losses Debit 5.780 0 Credit 0 5,780 M