Credit Losses Based on Percentage of Credit Sales Lewis Company uses the allowance method of handling credit losses. It estimates losses at 1% 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 Balance Sheet Income Statement Stockholders' - Uabilities Equity Revenues Expenses - Net Income Assets alance sheet b. Show how the Accounts Receivable account and the Allowance for Doubtful Accounts would appear on the December 31 Note: Do not use negative signs with any of your answers. Balance Sheet (excerpt) Current assets Cash $ XXX Accounts receivable 150000 Less Allowance for doubtful accounts Inventory XOOOO Other current assets Toul Current Assets