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Exercise 9-6 (Algo) Recording and reporting allowance for doubtful accounts LO P2 In its first year of operations, Cloudbox has credit sales of $224,000. Its year-end balance in accounts receivable is $12,400, and the company estimates that $2700 of its accounts receivable is uncollectible. a. Prepare the year-end adjusting entry to estimate bad debts expense. b. Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $28,000, Cash is $20,000, and Prepaid Rent is $3,600. Note. The company reports Accounts receivable, net on the balance sheet Complete this question by entering your answers in the tabs below. Required A Required B Prepare the year-end adjusting entry to estimate bad debts expense. View transaction list View transaction list Journal entry worksheet