3. (8 points) The balance sheet of Starsky Company at December 31, 2018, includes the following. Accounts receivable Less: Allowance for doubtful accounts 500,000 (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 $850,000 were collected. 3. Customer accounts of $34,000 were written off during the year. At year-end, bad debts were estimated to be 5% 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. Accounts Debit Credit Page 2 + 126%