Swathmore Clothing Corporation grants its customers 30 days’credit. The company uses the allowance method for its uncollectibleaccounts receivable. During the year, a monthly bad debt accrual ismade by multiplying 2% times the amount of credit sales for themonth. At the fiscal year-end of December 31, an aging of accountsreceivable schedule is prepared and the allowance for uncollectibleaccounts is adjusted accordingly.

At the end of 2020, accounts receivable were $592,000 and theallowance account had a credit balance of $56,000. Accountsreceivable activity for 2021 was as follows:

Beginning balance	$	592,000
Credit sales		2,710,000
Collections		(2,573,000	)
Write-offs		(48,000	)
Ending balance	$	681,000

The company’s controller prepared the following aging summary ofyear-end accounts receivable:

req1-

1. Record a summary entry to record the monthly bad debtaccrual.

2. Record a summary entry to record the 2021 write-offs.

req 2-  

1. Record the year-end adjusting entry for bad debt expense.

req 3a-

What is total bad debt expense for 2021?

req 3b-

How would accounts receivable appear in the 2021 balancesheet?

		Summary
Age Group	Amount		Percent Uncollectible
0?60 days	$	415,000	4	%
61?90 days		98,000	12
91?120 days		58,000	28
Over 120 days		110,000	39
Total	$	681,000

Required:
1. Prepare a summary journal entry to record themonthly bad debt accrual and the write-offs during the year.
2. Prepare the necessary year-end adjusting entryfor bad debt expense.
3-a. What is total bad debt expense for2021?
3-b. How would accounts receivable appear in the2021 balance sheet?