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 31-60 days past due 61-120 days past due 121-180 days past due Over 180 days past due Probability of Balance Noncollection $180,000 1% 40,000 3% 22,000 5% 14,000 10% 8,000 25% $264,000 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. b. Prepare the journal entry to write off the Lyons Company's account on April 10 of the following year in the amount of $525. General Journal Description Date Dec.31 Debit 0 0 Credit 0 0 To record allowance for credit losses. General Journal Description Debit Credit Date April 10 To write off Lyons Company's account