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 2020, accounts receivable were $584,000 and the allowance account had a credit balance of $48,000. Accounts receivable activity for 2021 was as follows: Beginning balance $ 584,000 Credit sales 2,670,000 Collections (2,533,000 ) Write-offs (44,000 ) Ending balance $ 677,000 The companys controller prepared the following aging summary of year-end accounts receivable: Summary Age Group Amount Percent Uncollectible 060 days $ 395,000 5 % 6190 days 94,000 14 91120 days 54,000 24 Over 120 days 134,000 35 Total $ 677,000

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?