E8-9B. Credit Losses Based on Accounts Receivable Billy, Inc., analyzed its accounts receivable balances at December 31 and arrived at the aged balances listed below, along with the percentage that is esti- mated to be uncollectible: Probability of Noncollection Age Group Balance 1 0-30 days past due 31-60 days past due 61-120 days past due 121-180 days past due Over 180 days past due $320,000 60,000 33,000 18,000 14,000 $445,000 3 6 10 25 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,560 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 Matthews Company's account on the following April 10, in the amount of $460