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Credit Losses Based on Accounts Receivable Hunter, 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: Probability of Age Group Balance Noncollection 0-30 days past due $91,000 196 31-60 days past due 21,000 2% 61-120 days past due 12,000 596 121-180 days past due 7,000 1096 Over 180 days past due 5,000 25% $136,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $620 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 Rose Company's account on April 10 of the following year in the amount of $525 a. General Journal Description Debit Credit Date Dec.31 To record allowance for credit losses. Date General Journal Description Debit Credit April 10 To write off Rose Company's account. .. General Journal Description Date Dec.3 Debit Credit Bad Debts Expense Allowance for Doubtful Accounts Accounts Receivable - Rose Company Debit Credit b. General Journal Date Description April Bad Debts Expense Allowance for Doubtful Accounts Accounts Receivable - Rose Company Check

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