Credit Losses Based on Accounts Receivable Miller, 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: Age Group 0-30 days past due Balance $180,000 Probability of Noncollection 1% 31-60 days past due 40,000 4% 61-120 days past due 22,000 5% 121-180 days past due 14,000 12% Over 180 days past due 8,000 $264,000 25% The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,150 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 Lyons Company's account on April 10 of the following year in the amount of $575. a. Date Dec.31 b. General Journal Description Debit Credit To record allowance for credit losses. General Journal Description Debit Credit Date April 10 To write off Lyons Company's account.