Finish attempt Question 1 Notcom Marted out of 2.00 P es question eBook Print Vide Credit Losses Based on Credit Sales Lewis Company uses the allowance method for recording its expected credit losses. It estimates credit losses at 2 percent of credit sales, which were 5900,000 during the year. On December 31, the Accounts Receivable balance was $150,000, and the Allowance for Doubtful Accounts had a credit balance of $12.200 before adjustment. a. Prepare the adjusting entry to record the credit losses for the year b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear in the December 31 balance sheet. Date Dec 31 General journal Description Debit Credit To record allowance for credit losses b. Do not use negative signs with your answers) Current Check Save Answers Next