The following data as of May 1, 2020 were taken from the records of Bravo: Cash 21,000 Accounts Receivable 244,536 Inventories 130.035 Furniture & Fixtures 60,345 Land 613,000 Other assets 12,000 Accounts Payable 188,940 4 Notes Payable 210,000 Bravo, capital 681.976 And the following accounts and balances were taken from the records of Charlie Cash P 32.354 Accounts Receivable 577.890 Inventories 270,102 Furniture and Fixtures 44,789 Building 438.267 Other Assets 13.600 Accounts Payable 253,650 Notes Payable 355,000 Charlie, capital 768,352 Bravo and Charle agreed to form a partnership by contributing their respective assets and equities subject to the following adjustments a) Inventories of P6.500 and P6 700 are worthless in Bravo's and Charlie's respective books b) Accounts Receivable of P25,000 Bravos book and P30,000 in Charlie's book are uncollectib Other assets of P4 000 and PG.000 in Bravo and Charlie's respective books are to be written The adjustment to record the inventories would be

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....
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The following data as of May 1, 2020 were taken from the records of Bravo: Cash 21,000 Accounts Receivable 244,536 Inventories 130.035 Furniture & Fixtures 60,345 Land 613,000 Other assets 12,000 Accounts Payable 188,940 4 Notes Payable 210,000 Bravo, capital 681.976 And the following accounts and balances were taken from the records of Charlie Cash P 32.354 Accounts Receivable 577.890 Inventories 270,102 Furniture and Fixtures 44,789 Building 438.267 Other Assets 13.600 Accounts Payable 253,650 Notes Payable 355,000 Charlie, capital 768,352 Bravo and Charle agreed to form a partnership by contributing their respective assets and equities subject to the following adjustments a) Inventories of P6.500 and P6 700 are worthless in Bravo's and Charlie's respective books b) Accounts Receivable of P25,000 Bravos book and P30,000 in Charlie's book are uncollectib Other assets of P4 000 and PG.000 in Bravo and Charlie's respective books are to be written The adjustment to record the inventories would be
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