Problem 7-1 (Algo) Uncollectible accounts; allowance method; income statement and balance sheet approach [LO7-5, 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 $588,000 and the allowance account had a credit balance of $52,000. Accounts receivable activity for 2021 was as follows: Beginning balance Credit sales Collections Write-offs Ending balance $ 588,000 2,690,000 (2,553,000) (46,000) $ 679,000 The company's controller prepared the following aging summary of year-end accounts receivable: Summary Percent Uncollectible 3% Age Group 0-60 days 61-90 days 91-120 days Over 120 days Total Amount $405,000 96,000 56,000 122,000 $ 679,000 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