Credit Losses Based on Credit Sales & Classified Balance Sheet

QUESTION 7 incomplete answer Marked out of 11.00 F Flag question credit Losses Based on Credit Sales Highland Company uses the allowance method of handling credit losses. It estimates credit losses at 3% of credit sales which were S3,600,000 during the year. On December 31, the Accounts Receivable balance was $840,000 and the Allowance for Doubtful Accounts had a credit balance of $5,100 before adjustment. a. Prepare the adjusting entry to recordthe credit losses for the year. b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear in the December 31 balance sheet. General Journal Debit Credit Date Description Dec.31 0 To record allowance for credit losses. b. (Do not use negative signs with your answers.) Current Assets: Please answer all parts of the