Credit Losses Based on Credit Sales Lewis Company uses the allowance method for recording its expected credit losses. It estimates credit losses at 1% of credit sales which were $1,100,000 during the year. On December 31, the Accounts Receivable balance was $170,000 and the Allowance for Doubtful Accounts had a credit balance of $20,200 before adjustment a. Prepare the adjusting entry to record the 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 Date Description Debit Credit Dec 31 Bad Detts Expense 20.200 Allowance for Doubtful Accounts V fo record alowance for great losses 20,200 M b. (Do not use negative signs with your answers) Check Marks for this sub2213333 Previous SaveAnswers Current Assets Accounts Receivable 24 170,000 Less Allowance for Doubtful Accounts 21,280 148,720 x Next