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 3% 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 $574,000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2018 was as follows:
Beginning balance ............................. $ 574,000
Credit sales ..................................... 2,620,000
Collections ...................................... (2,483,000)
Write-offs ...................................... (68,000)
Ending balance ............................... $ 643,000
The company's controller prepared the following aging summary of year-end accounts receivable:
align="center">