The post-closing trial balances of two proprietorships on January 1, 2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $12,000 $10,100 Accounts receivable 14,500 22,000 Allowance for doubtful accounts $2,500 $3,700 Inventory 22,500 15,500 Equipment 38,000 24,000 Accumulated depreciation-equipment 20,200 9,200 Notes payable Accounts payable Sorensen, capital 15,100 12,600 18,500 26,000 30,700 Lucas, capital 20,100 $87,000 $87,000 $71,600 $71,600 Sorensen and Lucas decide to form a partnership, Pharoah Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $14,500 $22,000 Allowance for doubtful accounts 3,800 3,400 Inventory 23,500 16,800 Equipment 21,000 12,600 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.