Question 2 (10 points) Credit Losses Based on Credit Sales Highland Company uses the allowance method of handling credit losses. It estimates credit losses at 1% of credit sales which were $2,000,000 during the year. On December 31, the Accounts Receivable balance was $380,000 and the Allowance for Doubtful Accounts had a credit balance of $1,000 before adjustment. a. Prepare the adjusting entry to record the credit losses for the year. Enter the answers with a comma and no decimals or dollar signs in the proper debit or credit side. Bad Debt Expense Allowance For Doubtful Accounts b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear in the December 31 balance sheet. Enter the answers with a comma and no decimals or dollar signs. Accounts Receivable a. Prepare the adjusting entry to record the credit losses for the year. Enter the answers with a comma and no decimals or dollar signs in the proper debit or credit side. Bad Debt Expense Allowance For Doubtful Accounts b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear in the December 31 balance sheet. Enter the answers with a comma and no decimals or dollar signs. Accounts Receivable Less: Allowance for Doubtful Accounts Net Realizable Value MacBook