Problem 7-1 (Algo) Uncollectible accounts, allowance method; income statement and balance sheet approach (L07-5, 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 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 $ 578,000 balance Credit 2,640,000 sales Collections (2,503,000) Write-offs (41,000) Ending $ 674,000 balance The company's controller prepared the following aging summary of year-end accounts receivable: Summary Percent Uncollectible 5% 11 Age Group " 0-60 days $380,000 61-90 days100,000 91-120 days 51,000 Over 120 143,000 days Total $674,000 21 32 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