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Credit Losses Based on Accounts Receivable Hunter, Inc., analyzed its accounts receivable balances at December...

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Accounting

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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 Balance Noncollection Age Group 0-30 days past due $95,000 1% 31-60 days past due 25,000 2% 20 days past due 16,000 61-1 5% 121-180 days past due 11,000 10% Over 180 days past due 9,000 25% $156,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,020 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 $925

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