$1.$ 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 $$596,000$ and the allowance account had a credit balance of $$60,000.$ Accounts receivable activity for $2021$ was as follows:

Beginning balance $ $596,000$

Credit sales $2,730,000$

Collections $(2,593,000)$

Write$-$offs $(50,000)$

Ending balance $ $683,000$

The company$$s controller prepared the following aging summary of year$-$end accounts receivable:

Summary

Age Group Amount Percent Uncollectible

$060$ days $ $425,0005\%$

$6190$ days $91,00014$

$91120$ days $60,00030$

Over $120$ days $107,00041$

Total $ $683,000$

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?

$2.$ Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company$$s $2017$ financial statements contain the following information $($$ in millions$)$:

$20172016$

Balance sheets:

Accounts receivable, net $ $4,282$ $ $3,846$

Income statements:

Sales revenue $ $36,055$ $ $34,081$

A note disclosed that the allowance for uncollectible accounts had a balance of $$30$ million and $$54$ million at the end of $2017$ and $2016,$ respectively. Bad debt expense for $2017$ was $$51$ million. Assume that all sales are made on a credit basis.

Required:

$1.$ What is the amount of gross $($total$)$ accounts receivable due from customers at the end of $2017$ and $2016?$

$2.$ What is the amount of bad debt write$-$offs during $2017?$

$3.$ Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during $2017.$

$4.$ Analyze changes in net accounts receivable to calculate the amount of cash received from customers during $2017.$

$3.$ Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December $31,$ the company$$s fiscal year$-$end. The $2020$ balance sheet disclosed the following:

Current assets:

Receivables, net of allowance for uncollectible accounts of $$42,000$ $ $492,000$

During $2021,$ credit sales were $$1,810,000,$ cash collections from customers $$1,890,000,$ and $$51,000$ in accounts receivable were written off. In addition, $$4,200$ was collected from a customer whose account was written off in $2020.$ An aging of accounts receivable at December $31,2021,$ reveals the following:

Percentage of Year$-$End Percent

Age Group Receivables in Group Uncollectible

$060$ days $70\%5\%$

$6190$ days $2015$

$91120$ days $520$

Over $120$ days $540$

Required:

$1.$ Prepare summary journal entries to account for the $2021$ write$-$offs and the collection of the receivable previously written off.

$2.$ Prepare the year$-$end adjusting entry for bad debts according to each of the following situations:

a$.$ Bad debt expense is estimated to be $4\%$ of credit sales for the year.

b$.$ Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is estimated to be $10\%$ of the year$-$end balance in accounts receivable.

c$.$ Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

$3.$ For situations $($a$)($c$)$ in requirement $2$ above, what would be the net amount of accounts receivable reported in the $2021$ balance sheet?