Admitting New Partner Brian Caldwell and Adriana Estrada have operated a successful firm for many years, sharing net income and net losses equally. Kris Mays is to be admitted to the partnership on September 1 of the current year, in accordance with the following agreement a. Assets and liabilities of the old partnership are to be valued at their book values as of August 31, except for the following: I. Accounts receivable amounting to $2,600 are to be written off, and the allowance for doubtful accounts is to be increased to 5% of the remaining accounts. 2. Merchandise inventory is to be valued at $69,200. 3. Equipment is to be valued at $150,900. b. Mays is to purchase $65,000 of the ownership interest of Estrada for $71,000 cash and to contribute another $35,000 cash to the partnership for a total ownership equity of $100,000. The post-closing trial balance of Caldwell and Estrada as of August 31 is as follows: Caldwell and Estrada Post-Closing Trial Balance August 31, 20Y9 Debit Credit Balances Balances Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Notes Payable (current) Brian Caldwell, Capital Adriana Estrada, Capital 6,900 42,200 1,600 64,700 2,400 175,000 54,300 9,200 43,100 98,000 85,000 291,200 291/200 1. Journalize the entries as of August 31 to record the revaluations, using a temporary account entitled Asset Revaluations. Debits and credits to the Asset Revaluation account are losses and gains from revaluation, respectively. The balance in the accumulated depreciation account is to be eliminated. After journalizing the revaluations, dlose the balance of the asset revaluations account to the capital accounts of Brian Caldwell and Adriana Estrada. For a compound transaction, if an amount box does not require an entry, leave it blank Aug. 31-Equipment Brian Caldwell, Capital Adriana Estrada, Capital