Credit Losses Based on Percentage of Credit Sales Lewis Company uses the allowance method of handing credit losses. It estimates losses at 3% of credit sales, which were $900,000 during the year. On December 31, the Accounts Receivable balance was $150,000, and the Allowance for Doubtful Accounts had a credit balance of $10,200 before adjustment a. Determine the amount of the adjustment to record credit losses for the year. Note: Use negative signs with answers, when appropriate Income Statement Balance Sheet Assets Liabilities 0 Stockholders Equity 0 Revenues Expenses - Net Income 0 0 0 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 assets Cash Sxx.xxx 0 0 Inventory Other current assets Total Current Assets XXXXXX X.XXX $.XXX.XXX