eo 4G TE.d 99%a 8:42 PM Documento (13) - Guardado PROBLEM 9: SOCIETY Raul Rivera

Question

eo 4G TE.d 99%a 8:42 PM Documento (13) - Guardado PROBLEM 9: SOCIETY Raul Rivera and Rigoberto Mendoza decide to form a partnership ("partnership") combiningthe assets of their own businesses Rivera contributes with the following assets Cash (cash) $ 20,000 Accounts receivable (accounts receivable") 170,000 Pravisign foralwace ter doubtful accuts 10,500 loventory"inventory 150,000 Equipmentsquipmst) at yur.cost 200,000 Tbe partngrs aereed: -Not acceat $ 5,000 fron accounts eceivable since tbey hano("worthless') ThatS 12,500 is a reasonable provision for the. uncollectible accounts That the inventory should be recorded at its surrent market value of $ 122,000. That the cauipmsot must be yalued at $ 63,500. Record the iournal eatry of Rivera's investment

Explanation / Answer

JOURNAL ENTRY FOR INVESTMENT: ACCOUNTS TITLE AND EXPLANATION DEBIT $ CREDIT $ Cash Account Dr. 20000 Accounts receivable Dr. 165000 Inventory Account Dr. 122000 Equipment Account Dr. 63500       Rivera's Capital Account 358000       Allowance for uncollectible accounts 12500 (for assets contributing as capital in partnerhsip)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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