A New Partner Contributes Accounts Receivable to a Partnership, Which

question 61

True/False

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.

---

Definitions:

Petite Bourgeoisie

Refers to the lower middle class, historically defined as small business owners and workers who aspire to be part of the bourgeoisie, or middle class.

Bourgeoisie

The class of modern capitalists who own the means of production and employ wage labor, as distinguished from the proletariat in Marxist theory.

Proletariat

The class of wage earners, especially those who earn their living by manual labor or who are dependent for support on daily or casual employment; the working class.

IGE Score

An indicator used in economics to measure intergenerational mobility, reflecting the extent to which a parent’s income can predict their child’s income in adulthood.