Swathmore Clothing Corporation uses the allowance method to account for uncollectible accounts receivable. Each month, it estimates bad debts by multiplying credit sales by 3% and records a journal entry. At year-end, it prepares an aging of accounts receivable to adjust the allowance for uncollectible accounts. It is given that accounts receivable were $578,000 on December 31, 2023 with an allowance of $42,000. The company's controller has provided an aging summary of 2024 accounts receivable to calculate bad debt expense for the year.

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 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 2023 , accounts
recelvable were $578 , 000 and the allowance account had a credit balance of $42 , 000 .
Accounts receivable activity for 2024 was as follows: 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-a. What is total bad debt
expense for 2024 ? 3-b. How would accounts receivable appear in the 2024 balance sheet?
Complete this question by entering your answers in the tabs below. Prepare a summary journal
entry to record the monthly bad debt accrual and the write-offs during the year. Note: If no entry
is required for a transaction/event, select "No journal entry required" in the first account field.
Journal entry worksheet Record a summary entry to record the monthly bad debt accrual. Note:
Enter debits before credits. Complete this question by entering your answers in the tabs below.
Prepare the necessary year-end adjusting entry for bad debt expense. Note: If no entry is required
for a transaction/event, select "No journal entry required" in the first account fielc Journal entry
worksheet Record the year-end adjusting entry for bad debt expense. Note: Enter debits before
credits. 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-a. What is total bad debt expense for 2024 ? 3-b. How would accounts receivable
appear in the 2024 balance sheet? Complete this question by entering your answers in the tabs
below. What is total bad debt expense for 2024 ? 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-a. What is total bad debt
expense for 2024 ? 3-b. How would accounts receivable appear in the 2024 balance sheet?
Complete this question by entering your answers in the tabs below. How would accounts
receivable appear in the 2024 balance sheet?