Support Credit Losses Based on Credit Sales Fritters & Sons uses the allowance method of handling its credit losses. It estimates credit losses at three percent of credit sales, which were $1,900,000 during the year. On December 31, the Accounts Receivable balance was $300,000, and the Allowance for Doubtful Accounts had a credit balance of $23,200 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. General Journal Description Date Debit Credit Dec.31 To record allowance for credit losses b. (Do not use negative signs with your answers.) Current Assets $ . 5 Previous Save Answers Next Next Support Credit Losses Based on Credit Sales Fritters & Sons uses the allowance method of handling its credit losses. It estimates credit losses at three percent of credit sales, which were $1,900,000 during the year. On December 31, the Accounts Receivable balance was $300,000, and the Allowance for Doubtful Accounts had a credit balance of $23,200 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. General Journal Description Date Debit Credit Dec.31 To record allowance for credit losses b. (Do not use negative signs with your answers.) Current Assets $ . 5 Previous Save Answers Next Next