assuming the note was interest$-$bearing at $6\%.$ If an amount box does not require an entry, leave it blank.

Oct. $1$ Cash

Notes Payable

Nov. $30$ Notes Payable

Interest Expense

Cash

$21.$ If the articles of partnership provide for annual salary allowances of $$36,000$ and $$18,000$ to Partner X and Partner Y$,$ respectively, and net income is $$30,000,$ Partner X$\text{'}$s share of net income is $$20,000.$

True or False

$22.$ The amount that a partner withdraws as a monthly salary allowance does not affect the division of net income.

True or False

$23.$ As part of the initial investment, Jackson contributes accounts receivable that had a balance of $$22,500$ in the accounts of a sole proprietorship. Of this amount, $$3,000$ is deemed 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$.$ $$18,000$

b$.$ $$19,500$

c$.$ $$21,000$

d$.$ $$22,500$

Accounts receivable contributed by partner $-$ worthless accounts receivable

$24.$ Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $$7,500$ and a fair market value of $$18,000.$ Kelsey will invest a building with a book value of $$40,000$ and a fair market value of $$44,000.$

What amount will be recorded to Kelsey's capital account?

a$.$ $$14,000$

b$.$ $$24,000$

c$.$ $$40,000$

d$.$ $$44,000$

$25.$ Gentry, sole proprietor of a hardware business, decides to form a partnership with Noel. Gentry's accounts are as follows:

$\backslash$table$[[,$Book Value,Market Value$],[$Cash$,$$$25,000,$$$25,000$