The balance sheet of Starsky Company at January 1, 2019, includes the following. Accounts receivable 500,000 Less: Allowance for doubtful accounts (40,000) $460,000 Transactions in 2019 include the following. 1. Sales on credit for the year were $1,000,000. (all service revenue) 2. Accounts receivable of $870,000 were collected. 3. Customer accounts of $42,000 were written off during the year. 4. At year-end, bad debts were estimated to be 4% of the ending A/R balance (based on the % of A/R method). Make sure to update the A/R and Allowance balance for the transactions above before calculating bad debt expense. Prepare all journal entries necessary to reflect the transactions above.

The required journal entries are as follows:

Debit Accounts receivable                            $1,000,000

Credit Sales revenue                                     $1,000,000

(To record sales transactions on credit)

Debit Cash                                                        $870,000

Credit Accounts receivable                             $870,000

(To record collection of accounts receivable)

Debit Allowance for doubtful accounts            $42,000

Credit Accounts receivable                               $42,000

(Write-off of accounts receivable)

Debit Bad debt expense ($2,000 + $23,520)  $25,520

Credit Allowance for doubtful accounts           $25,520

(Recognition of bad debt expense for the year)

Explanation:

bd = 9 cm

step-by-step explanation:

in a 30°-60°-90° triangle, the ratio of side lengths is 1 : √3 : 2. that is, the longest side (hypotenuse) is twice the length of the shortest side.

all of the triangles in your geometry are 30°-60°-90° triangles. ac is the hypotenuse of δacd, and the short side of δabc.

the short side ad of δacd will be half the length of ac, so 3 cm. the hypotenuse ab of δabc will be twice the length of ac, so 12 cm. segment bd is the difference of the lengths ab and ad, so is

bd = ab -ad

bd = 12 cm - 3 cm = 9 cm

comment on side length ratios

you can figure the ratios of side lengths in a 30°-60°-90° triangle by considering the trig ratios of the angles. or you can figure the length of the altitude of an equilateral triangle of side length 2 using the pythagorean theorem.