A new partner contributes accounts receivable to a partnership, which appears in the ledger of his sole proprietorship at $20,500, and there was an allowance for doubtful accounts of $750. If $600 of the accounts receivable are completely worthless, the partnership Accounts Receivable should be debited for $19,900.

Question

Quizplus · Accepted Answer

To find the correct amount to debit to Accounts Receivable in the partnership's ledger, we need to subtract the allowance for doubtful accounts and the value of completely worthless accounts from the initial balance of accounts receivable contributed. Therefore, the calculation is $20,500 - $750 - $600 = $19,150. Since the question asks us for the amount to debit, we need to subtract this from the partner's capital account, resulting in a debit of $19,900.

A New Partner Contributes Accounts Receivable to a Partnership, Which