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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:

$\%$ Considered

Age Group Balance Uncollectible

$0-30$ days past due $$180,0001\%$

$31-60$ days past due $40,0002\%$

$61-120$ days past due $22,0005\%$

$121-180$ days past due $12,00010\%$

Over $180$ days past due $8,00025\%$

$$262,000$

The company handles credit losses using the allowance method.

The credit balance of the Allowance for Doubtful Accounts is $$1,040$ on December $31,$ before any adjustments.

a$.$ Determine the amount of the adjustment for estimated credit losses on December $31.$

$Answer $1$

b$.$ Determine the financial statement effect of a write off of the Lyons Company$$s account on April $10$ of the following year in the amount of $$425.$

Use negative signs with answers, when appropriate.

If a transaction increases and decreases the same Balance Sheet category, enter the increase amount in the first row and the decrease amount directly below $($in the second row$).$

Balance Sheet Income Statement

Stockholders'

Assets $=$ Liabilities $+$ Equity Revenues $-$ Expenses $=$ Net Income

Answer $2$

Answer $3$

Answer $4$

Answer $5$

Answer $6$

Answer $7$

Answer $8$

Answer $9$

Answer $10$

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