Michelle Hamilton and Bill Rossi decide to form a partnership. Hamilton invests $$38,800$ cash and accounts receivable of $$25,100$ less allowance for doubtful accounts of $$2,500.$ Rossi contributes $$29,000$ cash and equipment having a $$5,500$ book value. It is agreed that the allowance account should be $$3,600$ and the fair value of the equipment is $$10,600.$

Prepare the necessary journal entry to record the formation of the partnership. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit