eBook 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: Accounts receivable amounting to $2,200 are to be written off, and the allowance for doubtful accounts is to be increased to 3% of the remaining accounts Merchandise inventory is to be valued at $56,500. Equipment is to be valued at $127,600. b. Mays is to purchase $54,000 of the ownership interest of Estrada for $59,000 cash and to contribute $29,000 cash to the partnership for a total ownership equity of $83,000, The post-closing trial balance of Caldwell and Estrada as of August 31 follows: Caldwell and Estrada Post-Closing Trial Balance 30 13 Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Check My Work August 31, 2019 All work saved Debit Balances Credit Balances 5,600 34,400 1,200 $2,000 1,900 Email umr Save and Exe Previous Neve> Sub Agrement for Grading 90