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 $ 584,000 Credit sales 2,670,000 Collections (2,533,000 ) Write-offs (44,000 ) Ending balance $ 677,000 The companys controller prepared the following aging summary of year-end accounts receivable: Summary Age Group Amount Percent Uncollectible 060 days $ 395,000 5 % 6190 days 94,000 14 91120 days 54,000 24 Over 120 days 134,000 35 Total $ 677,000 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 2018? 3-b. How would accounts receivable appear in the 2018 balance sheet?

No	Event	General Journal	Debit	Credit
1	1	Bad debt expense	53,400
		Allowance for uncollectible accounts		53,400
2	2	Allowance for uncollectible accounts	44,000
		Accounts receivable		44,000

No	Event	General Journal	Debit	Credit
1	1	Bad debt expense
		Allowance for uncollectible accounts

Bad debt expense

Balance Sheet (partial)
Current assets:
Accounts receivable (net)