Credit Losses Based on Accounts ReceivableMiller, 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 GroupBalanceProbability ofNoncollection$0-30$ days past due$$99,0002\%31-60$ days past due$29,0005\%61-120$ days past due$20,00010\%121-180$ days past due$15,00012\%$Over $180$ days past due$13,00024\%$$$176,000$The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $$1,420$ on December $31,$ before any adjustments.Prepare the adjusting entry for estimated credit losses on December $31.$Prepare the journal entry to write off the Lyons Company's account on April $10$ of the following year in the amount of $$1,325$