Exercise 7-6 (Algo) Recording and reporting allowance for doubtful accounts LO P2 In its first year of operations, Cloudbox has credit sales of $236,000. Its year-end balance in accounts receivable is $13,600, and the company estimates that $3,300 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 $31,000, Cash is $23,000, and Prepaid Rent is $3,900. 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 Journal entry worksheet 1 Record the year-end adjusting entry to estimate bad debts expense. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal < Required A Required B >