Julie contributes, as part of her initial investment, accounts receivable with an allowance for
doubtful accounts. Which of the following reflects a proper treatment?
O The balance of the accounts receivable account should be recorded on the books of the partnership
at its net realizable value.
The allowance account may be set up on the books of the partnership because it relates to the
existing accounts that are being contributed.
The allowance account should not be carried onto the books of the partnership.
The accounts receivable and allowance should not be recorded on the books of the partnership
because a partner must invest cash in the business.