Problem 7-1 (Algo) Uncollectible accounts; allowance method; Income statement and balance sheet approach; financial statement effects [LO7-5, 7-6] 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 2023, accounts receivable were $602,000 and the allowance account had a credit balance of $66,000. Accounts receivable activity for 2024 was as follows: Beginning balance Credit sales Collections Write-offs Ending balance $ 600,000 2,760,000 (2,623,880) (53,880) $ 686,000 The company's controller prepared the following aging summary of year-end accounts receivable: Summary Age Group 8-60 days Accunt $ 448,888 Percent Uncollectible 5% 61-90 days 91-128 days Over 128 days Total 78,000 63,000 11 22 113,000 37 $ 686,800 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 2024 3-b. How would accounts receivable appear in the 2024 balance sheet? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Prepare the necessary year-end adjusting entry for bad debt expense. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Vew traction lat Journal entry worksheet 1 Record the year-end adjusting entry for bad debt expense. Note: Enter debits before credits. Event 1 General Journal Debit Credit Bad debt expense Allowance for uncollectible accounts Record entry Clear entry View general journal