Prepare the year-end adjusting entry to estimate bad debts expense. Journal entry worksheet Record the year-end adjusting entry to estimate bad delts expense. Note: Enter debits before credits. In its first year of operations, Cloudbox has credit sales of $220,000. Its year-end balance in accounts receivable is $12,000, and the company estimates that $2,500 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 $27,000, Cash is $19,000, and Prepaid Rent is $3,500. Note: The company reports Accounts receivable, net on the balance sheet. Prepaid Rent is $3,500. Note: The company reports Accounts receivable, net on the balance sheet. 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 $27,000, Cash is $19,000, and Prepaid Rent is $3,500. Note: The company reports Accounts receivable, net on the balance sheet