Problem 7-1 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 2017, accounts receivable were $600,000 and the allowance account had a credit balance of $64,000 Accounts receivable activity for 2018 was as follows Beginning balance $ 600,000 2,750,000 Credit sales Collections Write-offs Ending balance (2,613,000) (52,000) $ 685,000 The company's controller prepared the following aging summary of year-end accounts receivable: Summary Amount Percent Uncollectible Age Group 0-60 days 61-90 days 91-120 days Over 120 days $435,000 93,000 62,000 95,000 $685,000 10 21 36 Total 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 2018? 3-b. How would accounts receivable appear in the 2018 balance sheet? Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3A Req 3B