Lewis Company uses the allowance method of handling credit losses. It estimates losses at 1% of credit sales, which were $1,350,000 during the year. On December 31, the Accounts Receivable balance was $225,000, and the Allowance for Doubtful Accounts had a credit balance of $15,300 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' Assets Liabilities + Equity Revenues Expenses - Net Income 0 0 0 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 $ XX.XXX $ o 0 0 Inventory Other current assets Total Current Assets XXX.XXX X.XXX $.XXX.XXX Check