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 030 days past due $180,000 1% 3160 days past due 40,000 3% 61120 days past due 22,000 5% 121180 days past due 14,000 10% Over 180 days past due 8,000 25% $264,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,150 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 Companys account on April 10 of the following year in the amount of 525

Date	Description	debit	credit
Dec 31
	To record allowance for credit losses

Options-bad debits expense, allowance for doubtful accounts, accounts recievable Lyons company

Date	description	debit	credit
April 10
	To write off Lyons Company's account.