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 53,400 before adjustment. a. Determine the amount of the adjustment to record credit fosses for the year. Note: Use negative signs with answers, when appropriate Balance Sheet Income Statement Stockholders Assets Liabilities Equity Revenues Expenses - Net Income b. Show how the Accounts Receivable account and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet Note: Do not use negative signs with any of your answers Balance Sheet (excerpt Current asset $XX.XX Inventory Other current asset Tocal Current Assets XXXXX XXS