Harris Company uses the allowance method of handling its credit losses. It estimates credit losses at 3% of credit sales, which were $5,400,000 during the year. On December 31, the Accounts Receivable balance was $900,000, and the Allowance for Doubtful Accounts had a credit balance of $61,200 before adjustment. a. Determine the amount and financial statement effect of the adjustment to record the credit losses for the year. Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Assets = Liabilities + Equity Revenues - Expenses = Net Income Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear in the December 31 balance sheet. Note: Do not use negative signs with any of your answers. Balance Sheet (excerpt) Current assets Cash $ XX,XXX Answer Accounts receivable Answer 0 Answer Answer 0 Answer 0 Inventory XXX,XXX Other current assets X,XXX Total Cur