Exercises Journalize entry for formation of a partnership (LO 2), AP EH-1 Gary Ellis has owned and operated a proprietorship for several years. On January 1, he decides to terminate this business and become a partner in the firm of Marin and Ellis. Ellis's investment in the partnership consists of $15,000 in cash, and the follow- ing assets of the proprietorship: accounts receivable $14,000 less allowance for doubtful accounts of $2,000, and equipment $20,000 less accumulated depreciation of $4,000. It is agreed that the allowance for doubtful accounts should be $3,000 for the partnership. The fair value of the equipment is $17,500. Which of the following characteristics does NOT apply to Managerial accounting? Includes nonfinancial items such as on-time deliveries and product quality. O a Regularly uses predictions. O b. Information reviewed by internal auditors Oc Focuses on the company as a whole d