SDLI, Inc. 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 2015, accounts receivable were $1,250,000 and the allowance account had a credit balance of $106,000. Accounts receivable activity for 2016 was as follows:

Beginning balance $1,250,000

Credit sales 3,800,000

Collections (3,745,000)

Write-offs (82,000)

Ending balance $1,223,000

The companys controller prepared the following aging summary of year-end accounts receivable:

		Summary
			Percent
Age Group	Amount		Uncollectible
0-60 days	$ 825,000		2%
61-90 days	220,000		10%
91-120 days	50,000		30%
Over 120 days	128,000		40%
Total	$1,223,000

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. What is total bad debt expense for 2016? How would accounts receivable appear in the 2016 balance sheet?