Exercise 7-6 (Algo) Recording and reporting allowance for doubtful accounts LO P2 In its first year of operations, Cloudbox has credit sales of $204,000. Its year-end balance in accounts receivable is $10,400, and the company estimates that $1,700 of its accounts receivable is uncollectible. o. 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 $23,000, Cash is $15,000, and Prepaid Rent is $3,100. Note: The company reports Accounts receivable, net on the balance sheet. Complete this question by entering your answers in the tabs below. Prepare the year-end adjusting entry to estimate bad debts expense. 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 $23,000, Cash is $ Prepaid Rent is $3,100. Note: The company reports Accounts receivable, net on the balance sheet. Complete this question by entering your answers in the tabs below. Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $23,000, Cash is $15,000, and Prepaid Rent is $3,100. Note: The company reports Accounts receivable, net on the balance sheet