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 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: Beginning balance $ 574,000 Credit sales 2,620,000 Collections (2,483,000) Write-offs (68,000) Ending balance $ 643,000 The company's controller prepared the following aging summary of year-end accounts receivable: Summary Age Group Amount Percent Uncollectible 0-60 days $430.000 4% Age Group

Amount

Percent Uncollectible

0-60 days

$430,000

4%

61-90 days

98,000

15

91-120 days

60,000

25

Over 120 days

55,000

40

Total

$643,000

1- Prepare a summary journal entry to record the monthly bad debt accrual.

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2- Prepare a summary journal entry to record the write-offs during the year.Debit Choose...

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3- Prepare the necessary year-end adjusting entry for bad debt expense.

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4- What is total bad debt expense for 2016? $

5- How would accounts receivable appear in the 2016 balance sheet?Accounts Receivable

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