Return to question Problem 7-1 (Static) Uncollectible accounts; allowance method; income statement and balance sheet approach [LO7-5, 7-6) points 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) 68,000) $ $13,000 The company's controller prepared the following aging summary of year-end accounts receivable: Summary Percent Uncollectible 15 Age Group 0-60 days 61-90 days 91-120 days Over 120 days Tutal Amount $430,000 99.000 60,000 55,000 $643,000 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? Return to question Summary Percent Uncollectible Age Group 0-60 days 61-90 days 91-120 days Over 120 days Total Amount $430,000 90,000 60,000 55,000 $613,000 points 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Rey 1 Rec 2 Req 3A Reg3B Prepare the necessary year-end adjusting entry for bad debt expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Event General Journal Credit Debit 68,900 Bad debt expense Allowance for uncollectible accounts 68.900 X