The adjusting entry to record the adjustments of assets and liabilities of Jhim:* (1 Point) On April 1, 2019, Jhim and Ces decided to combine their businesses and form a partnership. Their balance sheet on this date, before adjustments, is given below. Jhim Ces Cash P180,000 P 70,500 Accounts receivable 370,000 270,000 Inventories 600,000 390,000 Furnitures & Fixtures-net 600,000 180,000 Office equipment 230,000 50,500 Prepaid Expenses 12,750 6,000 Total P1.992.750 P957,000 Accrued Expenses P 911,500 Capital 1,081,250 Total P1,992.750 360,000 607,000 P967,000 The parties agreed that Ces will make additional cash investment to give her 50% interest in the firm, after making the necessary adjustments stated below: a.) Provide 5% allowance for doubtful accounts on each accounts receivable. b.) Inventories should be recognized only at 80% of their book values. c) Furnitures and fixtures of Jhim is overvalued by P 25,000 while the equipment of Ces is overvalued by P 11,500. d.) Prepaid expenses of P 6,000 for Jhim and P 2,000 for Ces is to be recognized. e.) Accrued expenses of P 3,000 for Jhim and P 1,000 for Ces is to be recorded. The partnership will use a new set of accounting books. Debit Jhim, Capital 79,000, Prepaid Expenses 2,000 & Accum. Depreciation F&F - 25,000; Credit Allowance for bad debts 13,500, Inventories 78,000 & Accrued Expenses - 1,000 Debit Jhim, Capital 102,000, Prepaid Expenses 2,000 &; Credit Accum Depreciation F&F 11,500, Allowance for bad debts 13,500, Inventories 78,000 & Accrued Expenses - 1,000 Debit Jhim, Capital 110,500, Prepaid Expenses 6,000 & Accum. Depreciation F&F 25,000; Credit Allowance for bad debts 18,500, Inventories 120,000 & Accrued Expenses - 3,000 Debit Jhim, Capital 160,500, Prepaid Expenses 6,000; Credit Allowance for bad debts 18,500, Inventories 120,000, Accum. Depreciation F&F - 25,000 & Accrued Expenses 3,000