III. Problem-solving questions. (5 questions, 10 points each) 1. Alpha 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 2% times the amount ofcredit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the balance of allowance for uncollectible accounts is estimated as $62,000. At the beginning of 2015, accounts receivable were $700,000 and the allowance account had a credit balance of $50,000. Accounts receivable activity for 2015 was as follows: Beginning balance $ Credit sales Collections Write-offs 700,000 3,200,000 (2,910,000) (70,000) Ending balance S 920,000 Required: (I) Prepare a summary journal entry to record the total monthly bad debt accrual based on percentage of credit sales (2) Prepare the necessary year-end adjusting entry for bad debt expense (after aging analysis). Page 6