Penner and Torres decide to merge their proprietorships into a partnership called Pentor Company. The balance sheet of Torres Co. shows:
|
Accounts receivable |
$16,000 |
|
|
Less:Allowance for doubtful accounts |
1,200 |
$14,800 |
|
Equipment |
20,000 |
|
|
Less:Accumulated depreiciation-equip |
7,000 |
13,000 |
The partners agree that the net realizable value of the receivables is $14,500 and that the fair value of the equipment is $11,000. Indicate how the accounts should appear in the opening balance sheet of the partnership.