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 2010, accounts receivable were $574,000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2011 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:

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. What is total bad debt expense for 2011? How would accounts receivable appear in the 2011 balancesheet?

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Summary Age Group Amount Percent Uncollectible 0-60 days $ 4.30,000 40 61-90 days98,000 91-120 days 60,000 Over 120 days 55,000 Total 15 25 40 6,43,00