1Normal TNo Spax.. Heading1 Heading2Trale Subtitl Subitle Em. Emphasis intense E Styles P7-1 Uncollectible accounts; allowance method; income statement and balance sheet approach Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. At the end of 2017, accounts receivable were $574,000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2018 was as follows: Beginning balance $ 574,000 Credit sales Collections Write-offs Ending balance 643.000 2,620,000 (2,483,000) (68,000) The company's controller prepared the following aging summary of year-end accounts receivable: Summary Age Group AmountPercent Uncollectible 0-60 days $430,000 61-90 days 98,000 91-120 days 60,000 Over 120 days 55,000 Total 4% 15 25 40 Required: 1. Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year. 2. Prepare the necessary year end adjusting entry for bad debt expense. 3. What is total bad debt expense for 2018? How would accounts receivable appear in the 2018 balance sheet