Problem 7-1 (Static) 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 3% 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 $574.000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2021 was as follows: Beginning balance Credit sales Collections Write-offs Ending balance $ 574,000 2,620,000 (2,483,000 168.000 5 643,000 The company's controller prepared the following aging summary of year-end accounts receivable Summary Percent collection Aroup 0-60 days L-days Amount $430,000 8.000 50,000 15 10 Over 130 day Total $643.000 Problem 7-1 (Static) 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 3% 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 $574.000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2021 was as follows: Beginning balance Credit sales Collections Write-offs Ending balance $ 574,000 2,620,000 (2,483,000 168.000 5 643,000 The company's controller prepared the following aging summary of year-end accounts receivable Summary Percent collection Aroup 0-60 days L-days Amount $430,000 8.000 50,000 15 10 Over 130 day Total $643.000