After the first quarter of the current year, Joy and Lucy, both proprietors, decide to combine their businesses and created a partnership. Prior to the partnership formation, their balance sheets show the following balances Joy Lucy P 20,000 P 25,000 30,000 2,500 145,650 Cash Accounts Receivable Allowance for Doubtful Accounts Inventoreis Store Equipment Accumulated Deprecdation-S. Equipment Delivery Equipmet Accumulated Depredation- Del. Equipment Furniture Accounts Payable Notes Payable Capital The partners agreed on the following adjustments to their books 55,000 5,000 150,000 50,000 5,000 10,000 35,000 10,000 230,000 80,000 16,000 7,500 50,000 20,000 199,650 1 Both their Allowance for Doubtful Accounts will be increased by 4% of Account Receivable Joy's inventories will be valued at P 145,000 while that of Lucy will be reduced by 10% 3. Store Equipment will be taken in the partnership books at book value 4. The Delivery Equipment and its contra-account will be taken up as is in the partnership books. 5. The furniture will be taken at P8,000 and P5,000, respectively 6. Joy and Lucy will make an additional cash investment that will make their contributions equal to P250,000 each 7. They also agreed that a new set of books will be used by the partnership