Current	$304,000
060 days past due	44,000
61180 days past due	18,000
Over 180 days past due	8,000
	$374,000

In the past, the company has experienced credit losses as follows: one percent of current balances, five percent of balances 060 days past due, 18 percent of balances 61180 days past due, and 40 percent of balances over six months past due. The company bases its allowance for doubtful accounts on an aging analysis of accounts receivable. Required a. Prepare the adjusting entry to record the allowance for doubtful accounts for the year. b. Show how Accounts Receivable (including the credit balances) and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.