Instructions

Kimberly Payne and Arionna Maples decide to form a partnership by combining the assets of their separate businesses. Payne contributes the following assets to the partnership: cash $$24,800$; accounts receivable with a face amount of $$157,390$ and an allowance for doubtful accounts of $$4,310$; merchandise inventory with a cost of $$90,720$; and equipment with a cost of $$128,070$ and accumulated depreciation of $$41,130.$

The partners agree that $$5,710$ of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $$5,030$ is a reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inventory is to be recorded at the current market price of $$114,480,$ and that the equipment is to be valued at $$91,690.$

On December $1,$ journalize the partnership's entry to record Payne's investment. Refer to the Chart of Accounts for exact wording of account titles.