es Highland Company uses the allowance method of handling credit losses. It estimates losses at 1% of credit sales, which were $2,400,000 during the year On December 31, the Accounts Receivable balance was $250,000, and the Allowance for Doubtful Accounts had a credit batance of 51,700 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 Equity Expenses - Net Income Assets Liabilities 0 Revenues 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 5X0000 5 0 . 0 O Xoooo Inventory Other current assets Total Current Assets Check