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help me pleease, need a quick help Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance method for its uncollectible
help me pleease, need a quick help
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 accruel 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 2020, accounts receivable were $578,000 and the allowance account had a credit balance of $42,000, Accounts receivable activity for 2021 was as follows: Beginning balance Credit sales collections Welte-orts Ending balance $ 578,000 2,640,000 (2.503, 000) (01.000) $ 674,000 The company's controller prepared the following aging summary of year-end accounts receivable: Age Group 0-60 days 61-90 dayo 91-120 days over 120 days Total Summary Amount Percent Uncollectible $380,000 5. 100,000 11 51,000 21 143,000 32 $674,000 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-a. What is total bad debt expense for 2021? 3-b. How would accounts receivable appear in the 2021 balance sheet? 1:13:13 View transaction list Journal entry worksheet Step by Step Solution
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