solve this please Credit Losses Based on Percentage of Credit SalesLewis Company uses the allowance method of handling credit losses. It estimates losses at 1% of credit sales, which were $900,000 during the year.On December 31, the Accounts Receivable balance was $150,000, and the Allowance for Doubtful Accounts had a credit balance of$10,200 before adjustment.a. Determine the amount of the adjustment to record credit losses for the year.Note: Use negative signs with answers, when appropriate.Balance SheetIncome StatementStockholders'Assets= Liabilities +EquityRevenuesExpenses= Net Incomeb. Show how the Accounts Receivable account and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.Note: Do not use negative signs with any of your answers.Balance Sheet (excerpt)Current assetsCash$ XX,XXXInventoryXXX,XXXOther current assetsX,XXXTotal Current Assets$ XXX,XXX

In the given question, the estimated amount of credit losses are calculated as a percentage of sales…

ewis Company uses the allowance method of handling credit losses. It estimates losses at 1% of credit sales, which were $900,000 during the year. On December 31, the Accounts Receivable balance was $150,000, and the Allowance for Doubtful Accounts had a credit balance of 10,200 before adjustment. . Determine the amount of the adjustment to record credit losses for the year. lote: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Assets = Liabilities Equity Revenues Expenses = Net Income