Question

in its first year of operations, cloudbox has credit sales of $240000. its year-end balance in accounts receivable is $14000, and the company estimates that $3500of 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. Required A Required 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. CLOUDBOX Balance Sheet Assets Current assets Cash Accounts receivable, net Inventory Prepaid rent $ 24,000 32,000 4,000 Total current assets $ 60,000 < Required A Required B

Answer 1

CLOUD BOX Balance Sheet Assets Current assets Cash Accounts receivable, net Inventory Prepaid rent $ 24,000 32,000 4,000 Total current assets 70,500

Date Account Title and Explanation Debit Credit

31-Dec Bad debts expense                  $3,500  

         Allowance for doubtful debts          $3,500

                                  Cloud box

                                 Balance Sheet

                               As of December 31

Assets    

Current Assets    

Cash                                         24,000  

Accounts Receivable, net         10,500 =14,000-3500

Inventory                                  32,000  

Prepaid Rent                                  4,000  

Total Current Assets                  70,500

A balance sheet is an annual financial statement that contains information about a company's assets or liabilities at a particular point in time.

In financial accounting, a balance sheet is a summary of the financial balance of an individual or organization, whether it is a sole proprietorship, partnership, corporation, limited liability company, or other organization such as a government or non-profit organization.

Learn more about the Balance Sheet  here

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