Arnold Rada and Dexter Besinan agreed to form a laundry shop business in Davao City. They...

 

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Arnold Rada and Dexter Besinan agreed to form a laundry shop business in Davao City. They further agreed that adjustments be made in the book of Rada after which Besinan will contribute cash equal to the net assets (Net Assets equals Total Assets less Total Liabilities) after adjustments. The ledger account balances of Rada are as follows: Cash in Bank Accounts Receivable Estimated Uncollectible Accounts Laundry Equipment Accumulated Depreciation Accounts Payable P 65,000 40,000 (3,000) 120,000 (35,000) 15,000 The following adjustments are to be made: a. Accounts Receivable should have a 70% probability of collection b. Laundry Equipment should have a fair market value of P100,000 Q-18 What amount of adjustment to be made on the Estimated Uncollectible Accounts? Q-19 What amount the equipment is carried in the partnership book? Q-20 How much cash that Besinan should contribute? Arnold Rada and Dexter Besinan agreed to form a laundry shop business in Davao City. They further agreed that adjustments be made in the book of Rada after which Besinan will contribute cash equal to the net assets (Net Assets equals Total Assets less Total Liabilities) after adjustments. The ledger account balances of Rada are as follows: Cash in Bank Accounts Receivable Estimated Uncollectible Accounts Laundry Equipment Accumulated Depreciation Accounts Payable P 65,000 40,000 (3,000) 120,000 (35,000) 15,000 The following adjustments are to be made: a. Accounts Receivable should have a 70% probability of collection b. Laundry Equipment should have a fair market value of P100,000 Q-18 What amount of adjustment to be made on the Estimated Uncollectible Accounts? Q-19 What amount the equipment is carried in the partnership book? Q-20 How much cash that Besinan should contribute?

Answer rating: 100% (QA)

Q18 The adjustment to be made on the Estimated Uncollectible Accounts can be calculated as follows E... View the full answer