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 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: Een balm Credit sales Collections Write-otto Ending balance $ 2 000 2.760,000 12. 21.000) 1.000) $ 686.000 The company's controller prepared the following aging summary of year-end accounts receivable: Percent collectible 0-60 days 61-90 de 91-120 days Over 120 days Total Amount $40.000 TO 000 2000 11.000 306.000 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-o. What is total bad debt expense for 2021? 3-b. How would accounts receivable appear in the 2021 balance sheet? Complete this question by entering your answers in the tabs below