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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

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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 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 $604,000 and the allowance account had a credit balance of $68,000. Accounts receivable activity for 2021 was as follows: Beginning balance Credit sales Collections Write-offs Ending balance 604,000 2,770,000 (2,633,000) (54.000) 5 687,000 The company's controller prepared the following aging summary of year-end accounts receivable: Summary Age Group Anount Percent Uncollectible 0-60 days $445,000 41 61-90 day 72,000 12 91-120 days 64,000 2) Over 120 days 106,000 30 Total $687.000 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? 3-6. How would accounts receivable appear in the 2021 balance sheet? Reg1 Reg 2 Reg 3A Reg 38 Prepare a summary Journal entry to record the monthly bad debt accrual and the write-offs during the year. (If no entry is require transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet > 2 Record a summary entry to record the monthly bad debt accrual CES Note Enter deres before creats General Journal Debit Credit Event 1 Bocoranty Cherry View general Journal MC Graw MacBook Air EEN 18 DO 2 . S 4 3 % 5 02 > & 7 > 6 8 9 0 o Q w E R T Y Y U 0 o 4 S D F G H J J L Z C V B N M

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