If a Partner's Investment in a Partnership Consists of Accounts

question 88

True/False

If a partner's investment in a partnership consists of Accounts Receivable of $35000 and an Allowance for Doubtful Accounts of $7000 it would not be appropriate for the partnership to record the Allowance for Doubtful Accounts.

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Definitions:

Interest Note

A legal document that outlines the terms under which interest will be paid on borrowed funds.

Accrued Interest

Interest that has been incurred but not yet paid or received in cash.

Notes Receivable

Written promises for amounts to be received by a business, typically recognizable as assets on the balance sheet because they represent a legal obligation for the payer to settle the debt.

Interest Receivable

The amount of interest income that has been earned but not yet received in cash.