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.

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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 times amount of credit for the month. the fiscal year-end 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 $574,000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2016 was as follows: 574,000 Beginning balance 2,620,000 Credit sales Collections (2,483,000) Write-offs (68,000) 643,000 Ending balance The company's controller prepared the following aging summary of year-end accounts receivable Summary Age Group Amount Percent Uncollectible $430,000 0-60 days 4% 61-90 days 98,000 15 91-120 days 60,000 25 55,000 Over 120 days 40 Total $643,000