n its first year of operations, Cloudbox has credit sales of $240,000. Its year-end balance in accounts receivable is $14,000, and the ompany estimates that $3,500 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 $32,000, Cash is $24,000, and Prepaid Rent is $4,000. Note: The company reports Accounts receivable, 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 Record the year-end adjusting entry to estimate bad debts expense. Complete this question by entering your answers in the tabs below. Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $32,000, Cash is $24,000, and Prepaid Rent is $4,000. Note: The company reports Accounts receivable, net on the balance sheet. Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $8,400 of its accounts receivable from Leer Company. March 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions. Journal entry worksheet