Franca and Naheed are transferring $8,000 of accounts receivable from each of their sole proprietorships into a

Question:

Franca and Naheed are transferring $8,000 of from each of their sole proprietorships into a partnership. They have agreed that $7,000 of Franca's receivables is collectible but it is likely they will collect only $6,000 of the receivables from Naheed's proprietorship. How should these receivables be recorded in the partnership? Explain why.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...