Exercise 7-6 (Algo) Recording and reporting allowance for doubtful accounts LO P2 In its first year of operations, Cloudbox has credit sales of $212,000. Its year-end balance in accounts receivable is $11,200, and the company estimates that $2,100 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 $25,000, Cash is $17,000, and Prepaid Rent is $3,300. 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 General Journal Debit Credit Dec 31 Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $25,000, Cash is $17,000, and Prepaid Rent is $3,300. Note: The company reports Accounts receivable, net on the balance sheet. CLOUDBOX Balance Sheet Assets Current assets Total current assets 0