[The following information applies to the questions displayed below.] Pam and John are partners in the PJ's partnership sharing income in a ratio of 3:1. Gerry is to be admitted into the partnership with a 20 percent interest in the business. PaanJohn$120,00040,000 Required: Prepare journal entries to record Gerry's admission into the partnership for each of the following independent situations. f. Gerry invests $35,000. During the valuation process made as part of admitting the new partner, the partnership's inventory is determined to be overvalued by $20,000 because of obsolescence. PJ's partnership uses the lower-of-cost-or-market value method for inventories. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field