As part of the initial investment, Omar contributes accounts receivable that had a balance of $22,500 in the accounts of a sole proprietorship. Of this amount, $2,000 is completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $1,500. The amount debited to Accounts Receivable for the new partnership is
The amount debited to Accounts Receivable for the new partnership is
= $20,500
Working Notes for the above answer is as under
We have been provided with the information ,that
Omar contributes accounts receivable that had a balance of $22,500 in the accounts of a sole proprietorship.
From this $2,000 is completely worthless.
So The amount debited to Accounts Receivable for the new partnership is calculated as follow
=$ 22500- $ 2,000
=$ 20,500
