Assuming there are no known bad debts when two single proprietors decide to combine their businesses, it is usual practice to enter the full amount of the Accounts Receivable as a debit and the amount of the Allowance for Bad Debts as a credit in placing each partner's investment in the books of the partnership.
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Q6: A written agreement containing the various provisions
Q7: Partner compensation is reported on the income
Q8: Since partners' salaries are not treated as
Q9: If one partner contributes an asset to
Q10: If the partnership cannot pay a bill,
Q12: In opening the books for a partnership,
Q13: Termination of the partnership agreement, bankruptcy of
Q14: The interest of a partner in the
Q15: When two single proprietors decide to combine
Q16: The compensation of partners (other than their
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