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 2015, accounts receivable were $614,000 and the allowance account had a credit balance of $78,000. Accounts receivable activity for 2016 was as follows: Beginning balance Credit sales Collections Write-offs $ 614,000 2,820,000 2,683,000) (59,000) $ 692,000 Ending balance The company's controller prepared the following aging summary of year-end accounts receivable: Summary Age Group Amount Percent Uncollectible 0-60 days $ 470,000 5% 61-90 days 82,000 11 91-120 days 69,000 28 Over 120 71,000 36 days Total $692,000 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.) Journal entry worksheet 1 2 Record a summary entry to record the monthly bad debt accrual. Note: Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general Journal View transaction list Journal entry worksheet