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 2015, accounts receivable were $600,000 and the allowance account had a credit balance of $64,000. Accounts receivable activity for 2016 was as follows:

Beginning balance	$	600,000
Credit sales		2,750,000
Collections		(2,613,000)
Write-offs		(52,000)
Ending balance	$	685,000

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

		Summary
Age Group		Amount	Percent Uncollectible
060 days	$	435,000	3	%
6190 days		93,000	10
91120 days		62,000	21
Over 120 days		95,000	36
Total	$	685,000

Required:

1.	Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.	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.)

3-1.	What is total bad debt expense for 2016?

3-2.	How would accounts receivable appear in the 2016 balance sheet?