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 2020, accounts receivable were $594,000 and the allowance account had a credit balance of $58,000. Accounts receivable activity for 2021 was as follows:

Beginning balance $ 594,000

Credit sales 2,720,000

Collections (2,583,000 )

Write-offs (49,000 )

Ending balance $ 682,000

The companys controller prepared the following aging summary of year-end accounts receivable: Summary Age Group Amount Percent Uncollectible

060 days $ 420,000 3 %

6190 days 90,000 13%

91120 days 59,000 29%

Over 120 days 113,000 40 %

Total $ 682,000

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 2021?

3-b. How would accounts receivable appear in the 2021 balance sheet?