Credit Losses Based on Accounts Recelvable The company handles credic iasses using the allowance method. The credit balance of the Allowance for Doutuful Accounts is $1,320 on December 31, before any sdjustments. a. Prepare the adjustine entry for estimated credit losses on December 31. b, Preperc the joumal entry to write off the Rose Comparys account on April 10 of the followng year in the amount of 51,225