Recording Partner's Original Investment

Gwen Delk and Alliesha Johnson decide to form a partnership by combining the assets of their separate businesses. Delk contributes the following assets to the partnership: cash, $15,470; accounts receivable with a face amount of $162,440 and an allowance for doubtful accounts of $5,860; merchandise inventory with a cost of $95,620; and equipment with a cost of $193,780 and accumulated depreciation of $125,960.

The partners agree that $7,150 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $12,180 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 $89,880, and that the equipment is to be valued at $85,450.

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Journalize the partnership's entry to record Delk's investment. For a compound transaction, if an amount box does not require an entry, leave it blank.