Problem 7-1 (Algo) Uncollectible accounts; allowance method; income statement and balance she approach [LO7-5, 7-6] Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance method for its uncolle accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales fc 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 $582,000 and the allowance account had a credit balance of $46,000. Account receivable activity for 2021 was as follows: Beginning balance Credit sales Collections Write-offs Ending balance $ 582,000 2,660.000 (2,523,000) (43,000) $ 676,000 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 $390,000 93,000 53,000 140,000 $676,000 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? Reg 1 Reg 2 Reg 34 Reg 3B Prep Red summary journal entry to record the monthly bad debt accrual and the write-offs during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Event General Journal Credit Debit 79,800 Bad debt expense Accounts receivable 79,800 2 Allowance for uncollectible accounts Accounts receivable 43,000 43,000 ( Reg 1 Req2 > Reg 1 Reg 2 Rea 3 Req 3B How would accounts receivable appear in the 2021 balance sheet? Balance Sheet (partial) Current assets: Accounts receivable (net) $ 595,420 X ( Req 3A Reg 3B