TM 2 L Pered Business Course Return to course Support Hysobsan Credit Losses Based on Percentage of Credit Sales Highland Company uses the allowance method of handling credit losses. It estimates losses at 1% of credit sales, which were $1,200,000 during the year. On December 31, the Accounts Receivable balance was $280,000, and the Allowance for Doubtful Accounts had a credit balance of 51,700 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 OS 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 5 XX.XOCK 0 0 Inventory Other current assets Total Current Asset XOOXXOOK XXXX Sxxx Please answer all parts of the question Previous Save Answers sty 18 MacBook Air