Just one question this time. Still need a quick turn around of less than an hour and a half, please.

Michelle Hamilton and Bill rossi decide to form a partnership. Hamilton invests $35,000 cash and accounts eeceivable of $30,000 less allowance for doubtful accounts of $2,000. Rossi contributes $25,000 cash and equipment having a $6,000 book value. It is agreed that the allowance account should be $3,000 and the fair value of the equipment is $10,000.

Instructions

Prepare the necessary journal entry to record the formation of the partnership.