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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 2020, accounts receivable were $600,000 and the allowance account had a credit balance of $64,000. Accounts receivable activity for 2021 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 sount Percent Uncollectible $435,000 93,000 10 62,000 21 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 2021? 3-6. How would accounts receivable appear in the 2021 balance sheet? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 38 Prepare a summary Journal entry to record the monthly bad debt accrual and the write-offs during the year. (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 1 2 Record a summary entry to record the monthly bad debt accrual. Note: Enter debits before credits General Journal Debit Credit Event 1 Complete this question b entering your answers in the tabs below. Req 1 Req 3A Reg 2 Req 3B Prepare the necessary year-end adjusting entry for bad debt expense. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction fist Journal entry worksheet Record the year-end adjusting entry for bad debt expense. Note: Enter debits before credits General Journal Debit Credit Event 1 SVE & EXE Age Group 0-60 days 61-90 days 91-120 days Over 120 days Total Summary Arount Percent Uncollectible $435,000 3 93,000 10 62,000 21 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 2021? 3-b. How would accounts receivable appear in the 2021 balance sheet? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B What is total bad debt expense for 2021? Bad debt expense
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