In its first year of operations, Cloudbox has credit sales of $206,000. Its year-end balance in accounts receivable is $10,600, and the company estimates that $1,800 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 Cloudboxs classified balance sheet assuming Inventory is $23,500, Cash is $15,500, and Prepaid Rent is $3,150. Note: The company reports Accounts receivable, net on the balance sheet.

Exercise 7-6 (Algo) Recording and reporting allowance for doubtful accounts LO P2 In its first year of operations, Cloudbox has credit sales of $206,000. Its year-end balance in accounts receivable is $10,600, and the company estimates that $1,800 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 $23,500, Cash is $15,500, and Prepaid Rent is $3,150. 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 lit Journal entry worksheet