Penner and Torres decide to merge their proprietorships into a partnership called Pentor Company. The balance sheet of Torres Co. shows:
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Accounts receivable
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$16,000
|
|
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Less:Allowance for doubtful accounts
|
1,200
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$14,800
|
|
Equipment
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20,000
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|
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Less:Accumulated depreiciation-equip
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7,000
|
13,000
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The partners agree that the net realizable value of the receivables is $14,500 and that the fair value of the equipment is $11,000. Indicate how the accounts should appear in the opening balance sheet of the partnership.