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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
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 2023, accounts receivable were $606,000 and the allowance account had a credit balance of $70,000, Accounts receivable activity for 2024 was as follows: The company's controller prepared the following aging summary of year-end accounts receivable: Required: 1. Prepare a summary Joumal entry to record the monthly bad debt accrual and the write-offs during the year. 2. Prepare the necessary yeat-end adjusting entry for bad debt expense. 3.a. What is total bad debt expense for 2024 ? 3-b. How would accounts recelvable appear in the 2024 bolance sheet
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