Question

As part of the initial investment, Jackson contributes accounts receivable that had a balance of $25,974 in the accounts of a sole proprietorship. Of this amount, $1,213 is deemed completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $856. The amount debited to Accounts Receivable for the new partnership is a.$25,974 b.$24,761 c.$23,905 d.$25,118

Answer 1

b.$24,761

Step-by-step explanation:

The amount to be debited is the account receivable balance minus the amount deemed worthless

= $25,974 -$1,213

=$24,761

The amount of $856 provided as possible future uncollectable will not affect account receivable. The account receivable remains as it is until payment is received or an account has been declared uncollectable.