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 $612,000 and the allowance account had a credit balance of $76,000. Accounts receivable activity for 2021 was as follows: Beginning balance Credit sales Collections Write-offs Ending balance $ 612,000 2,810,000 (2,673,000) (58,000) $ 691,000 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 $465,000 80,000 68,000 70,000 $691,000 Parisiert 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? nts Complete this question by entering your answers in the tabs below. eBook Req1 Reg 2 Req Req 3B Print References Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year. (If no entry is transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Help Save & Exit Submit 61-90 days 91-120 days Over 120 days Total 80.000 68,000 78,000 $691,000 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? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3A Reg 38 What is total bad debt expense for 2021? Bad debt expense I Reg2 Req38 > 10 uus Over 120 days Total 58, UUU 78,000 $691,000 Required: 1. Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the yea 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 How would accounts receivable appear in the 2021 balance sheet? Balance Sheet (partial) Current assets: Accounts receivable (net)