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 $576,000 and the allowance account had a credit balance of $40,000. Accounts receivable activity for 2021 was as follows:

Beginning balance	$	576,000
Credit sales		2,630,000
Collections		(2,493,000	)
Write-offs		(40,000	)
Ending balance	$	673,000

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

		Summary
Age Group	Amount		Percent Uncollectible
060 days	$	435,000	3	%
6190 days		98,000	10
91120 days		50,000	20
Over 120 days		90,000	30
Total	$	673,000

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-b. How would accounts receivable appear in the 2021 balance sheet?