Question

Bob is investing in a partnership with Andy. Bob contributes as part of his initial investment, Accounts Receivable of $120,000; an Allowance for Doubtful Accounts of $18,000; and $12,000 cash. The entry that the partnership makes to record Bob's initial contribution includes a Group of answer choices

Answer 1

Credit to Bob, Capital for $114,000

Step-by-step explanation:

Based on the information given the entry that the partnership makes to record Bob's initial contribution includes a CREDIT TO BOB, CAPITAL FOR $114,000 Calculated using this formula

Bob, Capital=Accounts Receivable-Allowance for Doubtful Accounts+Cash

Let plug in the formula

Bob, Capital=$120,000-$18,000+$12,000

Bob, Capital=$114,000