To Do Chapter 07 Pre-Built Problems Help Save & Exit Submit 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 fiscall year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly 10 points At the end of 2017, accounts receivable were $614,000 and the allowance account had a credit balance of $78,000. Accounts receivable activity for 2018 was as follows: Print 614,000 2,820,000 (2,683, 000) ?139,0001 692,000 t sales Collections The company's controller prepared the following aging summary of year-end accounts receivable $470,000 69,000 $692,000 0-40 days 91-120 days Over 120 days 71 Total 1. Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year 2. Prepare the 3-a. What is total bad debt expense for 2018? 3-b. How would accounts receivable appear in the 2018 balance sheet? year-end adjusting entry for bad debt expense.