Credit Losses Based on Accounts Recelvable 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: The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is 51,420 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 $1,325