eBook Print Question 11Partially correctMark 1.67 out of 2.00 Not flaggedFlag question Question text Credit Losses Based on Accounts Receivable 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: Age Group Balance Probability of Noncollection 0-30 days past due $93,000 2% 31-60 days past due 23,000 5% 61-120 days past due 14,000 10% 121-180 days past due 9,000 12% Over 180 days past due 7,000 24% $146,000 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. Prepare the adjusting entry for estimated credit losses on December 31. Prepare the journal entry to write off the Lyons Company's account on April 10 of the following year in the amount of $725 a. General Journal Date Description Debit Credit Dec.31 Answer Answer 1,545 Answer 0 Answer Answer 0 Answer 1,545 To record allowance for credit losses. b. General Journal Date Description Debit Credit April 10 Answer Answer 725 Answer 0 Answer Answer 0 Answer 725 To write off Lyons Company's account