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: 1. Accounts receivable amounting to $2,200 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 $57,900. 3. Equipment is to be valued at $125,900. b. Mays is to purchase $55,000 of the ownership interest of Estrada for $60,000 cash and to contribute another $30,000 cash to the partnership for a total ownership equity of $85,000. The post-closing trial balance of Caldwell and Estrada as of August 31 is as follows: Caldwell and Estrada Post-Closing Trial Balance Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory. Prepaid Insurance Equipment August 31, 2019 Debit Balances Credit Balances 5,700 35,200 1,400 54,100 2,000 Dropbox promotion 146,000