E8-2A. Credit Losses Based on Accounts Recelvable Hunter, Inc., analyzed its accounts receivable balances at December 31 , and arrived at the aged balances listed helow, along with the percentage that is The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $820 on December 31 , before any adjustments. a. Prepare the adjusting entry for estimated credit losses on December 31 . b. Prepare the joumal entry to write off the Rose Company's account on April 10 of the following year in the amount of $650