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In its first year of operations, Cloudbox has credit sales of $ 2 3 4 , 0 0 0 . Its year - end balance

In its first year of operations, Cloudbox has credit sales of $234,000. Its year-end balance in accounts recelvable is $13,400, and the
company estimates that $3,200 of its accounts recelvable 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 $30,500, Cash is $22,500, and
Prepald Rent is $3,850. Note: The company reports Accounts recelvable, 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.
Journal entry worksheet
1
Record the year-end adjusting entry to estimate bad debts expense.
Note: Enter debits before credits.
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