Credit Losses Based on Percentage of Credit Sales Highland Company uses the allowance method of handling credit losses. It estimates losses at 2% of credit sales, which were $600,000 during the year. On December 31, the Accounts Receivable balance was $560,000, and the Allowance for Doubtful Accounts had a credit balance of $3,400 before adjustment. a. Determine the amount of the adjustment to record credit losses for the year. Note: Use negative signs with answers, when appropriate