The partnership of Blossom, Blue, and Kingbird engaged you to adjust its accounting records and convert them uniformly to the The advances from customers were recorded as sales in the year the cash was received.

In $2024,$ the partnership recorded a provision of $$7,900$ for anticipated declines in inventory prices. You convinced the

partners that the provision was unnecessary and should be removed from the books.

The partnership charged equipment purchased for $$4,700$ on January $1,2024,$ to expense. This equipment has an estimated

life of $10$ years and an estimated salvage value of $$300.$ The partnership depreciates its capitalized equipment using the

declining balance method at twice the straight$-$line depreciation rate.

The partners agreed to establish an allowance for doubtful accounts at $2\%$ of current accounts receivable and $5\%$ of past$-$due

accounts. At December $31,2023,$ the partnership had $$50,300$ of accounts receivable, of which only $$3,700$ was past due. At

December $31,2024,20\%$ of accounts receivable was past due, of which $$3,700$ represented sales made in $2023$ and was

considered collectible. The partnership had written off uncollectible accounts in the year the accounts became worthless as

follows:

Goodwill was recorded on the books in $2024$ and credited to the partners' capital accounts in the profit and loss ratio in

recognition of an increase in the value of the business resulting from improved sales volume. The partners agreed to write off

the goodvill before admitting the new partner.

Prepare a worksheet showing the adjustments and the adjusted trial balance for the partnership on the accrual basis at December $31.$

All adjustments affecting income should be made directly to partners' capital accounts. Supporting computations should be in

good form. $($Do not prepare formal financial statements or formal journal entries.$)($Round answers to $0$ decimal places, eg$.5,125.)$ Blossom, Blue, and Kingbird P

Adjusted Trial Balanc

Unadjusted

Balance

accrual basis in anticipation of admitting Kerns as a new partner. Some accounts are on the accrual basis and some are on the cash

basis. The partnership's books were closed at December $31,2024,$ by the bookkeeper, who prepared the general ledger trial balance

that appears as follows:

Your inquiries disclose the following:

The partnership was organized on January $1,2023.$ No provision was made in the partnership agreement for the allocation of

partnership profits and losses. During $2023,$ profits were allocated equally among the partners. The partnership agreement

was amended, effective January $1,2024,$ to provide for the following profit and loss ratio: Blossom, $40\%$; Blue, $40\%$; and

Kingbird, $20\%.$ The amended partnership agreement also stated that the accounting records were to be maintained on the

accrual basis and that any adjustments necessary for $2023$ should be allocated according to the $2023$ profit allocation

agreement.

The following amounts were not recorded as prepayments or accruals.