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 $598.000 and the allowance account had a credit balance of $62,000. Accounts receivable activity for 2021 was as follows: Beginning balance Credit sales Collections write-offs Ending balance $ 590,000 2,740,000 (2.603,000) (51.000 5 584,000 The company's controller prepared the following aging summary of year-end accounts receivables 25 Age Group 0-60 days 61-90 days 91-120 days Over 120 days Total Amount $430,000 92,000 61,000 101,900 $684,000 Summary Percent Uncollectible 4 % 15 20 35 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 rece able appear in the 2021 balance sheet