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: Assets and liabilities of the old partnership are to be valued at their book values as of August 31, except for the following: 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. Merchandise inventory is to be valued at $67,100. Equipment is to be valued at $154,400. Mays is to purchase $64,000 of the ownership interest of Estrada for $70,000 cash and to contribute $35,000 cash to the partnership for a total ownership equity of $99,000. The post-closing trial balance of Caldwell and Estrada as of August 31 follows: Caldwell and Estrada Post-Closing Trial Balance August 31, 20Y9 Debit Balances Credit Balances Cash 6,700 Accounts Receivable 40,800 Allowance for Doubtful Accounts 1,600 Merchandise Inventory 62,700 Prepaid Insurance 2,300 Equipment 179,000 Accumulated DepreciationEquipment 55,500 Accounts Payable 14,600 Notes Payable (current) 41,800 Brian Caldwell, Capital 95,000 Adriana Estrada, Capital 83,000 291,500 291,500