As Part of the Initial Investment, Omar Contributes Accounts Receivable

question 119

Multiple Choice

As part of the initial investment, Omar contributes accounts receivable that had a balance of $22,500 in the accounts of a sole proprietorship. Of this amount, $2,000 is completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $1,500. The amount debited to Accounts Receivable for the new partnership is

• A) $19,000
• B) $22,500
• C) $21,000
• D) $20,500

Learn how co-insurance clauses affect claims and indemnity payments.

Comprehend roles and responsibilities of insurance agents.

Understand the concept of insurable interest and its necessity in an insurance contract.

Know the principles of contribution among insurers.

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