LaTasha Nabors and Chelsey Rollins decide to form a partnership by combining the

Question

LaTasha Nabors and Chelsey Rollins decide to form a partnership by combining the assets of their separate businesses. Nabors contributes the following assets to the partnership: cash, $24,560; accounts receivable with a face amount of $161,390 and an allowance for doubtful accounts of $4,490; merchandise inventory with a cost of $84,060; and equipment with a cost of $137,580 and accumulated depreciation of $45,680. The partners agree that $6,080 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $4,680 is a reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inventory is to be recorded at the current market price of $99,950, and that the equipment is to be valued at $89,040. On December 1, Journalize the partnership's entry to record Nabor's investment. Refer to the Chart of Accounts for exact wording of account titles.

Explanation / Answer

Date Account title Debit credit 1 cash 24560 Accounts receivable    [161390-6080] 155310 Merchandise inventory 99950 Equipment 89040 Allowance for doubtful account 4680 La tasha nabors 364,180 [being investment made recorded ]

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.