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 $600,000 and the allowance account had a credit balance of $64,000. Accounts receivable activity for 2018 was as follows: Beginning balance Credit sales Collections Write-offs Ending balance $ 600,000 2,750,000 (2,613,000) (52,000) $ 685,000 The company's controller prepared the following aging summary of year-end accounts receivable: Age Group 0-60 days 61-90 days 91-120 days Over 120 days Total Summary Amount Percent Uncollectible $435,000 93,000 62.000 95,000 36 $685,000 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? Req 1 Req 2 Req Req 3B Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year. (If no en transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record a summary entry to record the monthly bad debt accrual. Note: Enter debits before credits. Event General Journal Debit Record entry Clear entry View general journal Req 1 Reg 2 Req 3A Req 3B Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record a summary entry to record the 2018 write-offs. Note: Enter debits before credits. Event General Journal Debit /Credit 1 TIL Record entry Clear entry View general journal Req 1 Req 2 Req 3A Req 3B Prepare the necessary year-end adjusting entry for bad debt expense. (If no entry is required for at entry required" in the first account field.) View transaction list Journal entry worksheet Record the year-end adjusting entry for bad debt expense. Note: Enter debits before credits. Event General Journal Debit Credit FREE Record entry Clear entry View general journal Prey 3 of 3 !! Neyt The company's controller prepared the following aging summary of year-end accounts receivable: Age Group 0-60 days 61-90 days 91-120 days Over 120 days Total Summary Amount Percent Uncollectible $435,000 93,000 10 62,000 21 95,000 $685,000 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Reg 3B What is total bad debt expense for 2018? Bad debt expense Reg Reg 3B > Age Group 0-60 days 61-90 days 91-120 days Over 120 days Total Amount Percent Uncollectible $435,000 3 % 93,000 10 62,000 95,000 $685,000 Fequired: - Prepare a summary journal entry to record the monthly bad debt accrual and the write-of 2. Prepare the necessary year-end adjusting entry for bad debt expense. B-a. What is total bad debt expense for 2018? 3-b. How would accounts receivable appear in the 2018 balance sheet? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req Req 3B How would accounts receivable appear in the 2018 balance sheet? Balance Sheet (partial) Current assets: Accounts receivable (net)
