Recording Partner's Original Investment

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, $11,170; accounts receivable with a face amount of $117,290 and an allowance for doubtful accounts of $4,230; merchandise inventory with a cost of $84,570; and equipment with a cost of $136,050 and accumulated depreciation of $88,430.

The partners agree that $5,160 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $8,800 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 $79,500, and that the equipment is to be valued at $60,000.

Journalize the partnerships entry to record Paynes investment. For a compound transaction, if an amount box does not require an entry, leave it blank.