Bob Is Investing in a Partnership with Andy

question 150

Multiple Choice

Bob is investing in a partnership with Andy. Bob contributes as part of his initial investment, Accounts Receivable of $80,000; an Allowance for Doubtful Accounts of $12,000; and $8,000 cash. The entry that the partnership makes to record Bob's initial contribution includes a

• A) credit to Bob, Capital for $88,000.
• B) debit to Accounts Receivable for $68,000.
• C) credit to Bob, Capital for $76,000.
• D) debit to Allowance for Doubtful Accounts for $12,000.