4 You are forming a partnership with a close friend. Following is a list of financial items that you and friend are adding to the partnership Book Values You Friend Cash $15,000 $17,000 Accounts Receivable $9,000 $7,500 Allowance for Doubtful Accounts $800 $600 Inventory $18,000 $16,000 Equipment $37,500 $43,200 Accumulated Depreciation $12,500 $13,200 Accounts Payable $14,000 $15,500 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Equipment Accumulated Depreciation Accounts Payable Market Values You Friend $15,000 $17,000 $8,000 $7,500 $900 $900 $16,500 $15,000 $32,000 $28,000 $14,000 $13,500 Required: 1 Record the journal entry to prepare the formation of the partnership. 2 The market value for account receivable, inventory and equipment are different from the book value. Give one example why the market value vs the book value changed for each of the three assets