Gwen Delk and Alliesha Johnson decide to form a partnership by combining the assets of their separate businesses. Delk contributes the following assets to the partnership:
Cash, $13,000; accounts receivable with a face amount of $136,000 and an allowance for doubtful accounts of $8,400; merchandise inventory with a cost of $90,000; and equipment with a cost of $155,000 and accumulated depreciation of $100,000.
The partners agree that $6,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $10,200 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 $84,700, and that the equipment is to be valued at $69,500.
Journalize the partnership’s entry to record Delk’s investment.