My Subscriptions Sydney joison Credit Losses Based on Credit Sales Ranch Company uses the allowance method of handling its credit losses. It estimates credit losses at 2.5 percent of credit sales, which were 52,700.000 during the year. On December 31, the Accounts Receivate balance was 5475.000, and the Allowance for Doubtful Accounts had a credit balance of 530,600 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. General Journal Description b. (Do not use negative signs with your answers :) Current Assets Next Save Answers