In its first year of operations, Cloudbox has credit sales of $$230,000.$ Its year$-$end balance in accounts receivable is $$13,000,$ and the company estimates that $$3,000$ 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 $$29,500,$ Cash is $$21,500,$ and Prepaid Rent is $$3,750.$ Note: The company reports Accounts receivable, net on the balance sheet.

Complete this question by entering your answers in the tabs below.

Required A

Prepare the year$-$end adjusting entry to estimate bad debts expense.

Journal entry worksheet

$1$

Record the year$-$end adjusting entry to estimate bad debts expense.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December$,$Bad debts expense,,$],[31,$Allowance for doubtful accounts,,$]]$