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In its first year of operations, Cloudbox has credit sales of $218,000. Its year-end balance...

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Accounting

In its first year of operations, Cloudbox has credit sales of $218,000. Its year-end balance in accounts receivable is $11,800, and the company estimates that $2,400 of its accounts receivable is uncollectible.

  1. Prepare the year-end adjusting entry to estimate bad debts expense.
  2. Prepare the current assets section of Cloudboxs classified balance sheet assuming Inventory is $26,500, Cash is $18,500, and Prepaid Rent is $3,450. Note: The company reports Accounts receivable, net on the balance sheet.

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