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 2017, accounts receivable were $584,000 and the allowance account had a credit balance of $48,000. Accounts receivable activity for 2018 was as follows:

Beginning balance$584,000Credit sales2,670,000Collections(2,533,000)Write-offs(44,000)Ending balance$677,000

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

SummaryAge GroupAmountPercent Uncollectible0-60 days$395,0005%61-90 days94,0001491-120 days54,00024Over 120 days134,00035Total$677,000

Required:

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

3-a.What is total bad debt expense for 2018?