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 2012, accounts receivable were $590,000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2013 was as follows:

Beginning balance	$	590,000
Credit sales		2,700,000
Collections		(2,563,000	)
Write-offs		(47,000	)
Ending balance	$	680,000

The companys controller prepared the following aging summary of year-end accounts receivable:

	Summary
Age Group	Amount			Percent Uncollectible
060 days	$	410,000			5	%
6190 days		97,000			11
91120 days		57,000			27
Over 120 days		116,000			38
Total	$	680,000

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 particular 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 an event, select "No journal entry required" in the first account field.)

3.1	What is total bad debt expense for 2013?

3.2	Calculate the amount of accounts receivable that would appear in the 2013 balance sheet?