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 2017, accounts receivables were $574,000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2018 was as follows: Beginning balance $574,000 Credit sales 2,620,000 Collections (2,483,000) Write-offs (68,000) Ending balance $643,000 The companys controller prepared the following aging summary of year-end accounts receivable: Summary Age group Amount Percent Uncollectible 0-60 days $430,000 4% 61-90 days 98,000 15% 91-120 days 60,000 25% Over 121 days 55,000 40% Total $643,000 Required: 1. Prepare a summary journal entry to record the monthly bad debt accrual (i.e. one JE instead of 12 JEs) and the write-offs during the year. 2. Prepare the necessary year-end adjusting entry for bad debt expense. 3. What is the total bad debt expense for 2018? How would accounts receivable appear in the 2018 balance sheet?