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 $608,000 and the allowance account had a credit balance of $72,000. Accounts receivable activity for 2016 was as follows:

Beginning balance	$	608,000
Credit sales		2,790,000
Collections		(2,653,000)
Write-offs		(56,000)
Ending balance	$	689,000

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

		Summary
Age Group		Amount	Percent Uncollectible
060 days	$	455,000	5	%
6190 days		76,000	14
91120 days		66,000	25
Over 120 days		92,000	40
Total	$	689,000

Required:

1.	Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year Prepare the necessary year-end adjusting entry for bad debt expense What is total bad debt expense for 2016? How would accounts receivable appear in the 2016 balance sheet?