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Need help with all requirements (1, 2, 3-a, and 3-b). Thanks. Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance

Need help with all requirements (1, 2, 3-a, and 3-b). Thanks. image text in transcribed
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 2% 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 $602,000 and the allowance account had a credit balance of $66,000. Accounts receivable activity for 2021 was as follows: Beginning balance Credit sales Collections Write-offs Ending balance $ 602,000 2.760,000 (2,623,000) (53,000) $ 686,000 The company's controller prepared the following aging summary of year-end accounts receivable: Age Group 0-60 days 61-90 days 91-120 days Over 120 days Total Summary Amount Percent Uncollectible $440,000 5. 70,000 11 63,000 22 113,000 37 $686,000 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

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