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A rollover IRA should be a Traditional IRA.     The 1099-R with the code 7 should have the IRA/SEP/SIMPLE box checked.

It will be taxable but there certainly is a way to indicate that it was converted to a Roth IRA (provided that it was converted within 60 days of the distribution).

See below for a $5,000 IRA distribution converted to a Roth.

Note:  There is not difference in the tax between your method and the correct method, but only the  correct method will produce the required 8606 form that reports the Roth conversion.