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 $582,000 and the allowance account had a credit balance of $46,000. Accounts receivable activity for 2016 was as follows:

Beginning balance$582,000Credit sales2,660,000Collections(2,523,000)Write-offs(43,000)Ending balance$676,000

The company's controller prepared the following aging summary of year-end accounts receivable:

SummaryAge GroupAmountPercent Uncollectible0-60 days$390,0003%61-90 days93,0001391-120 days53,00023Over 120 days140,00034Total$676,000

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.)