Beck and Cey decide to merge their proprietorships into a partnership called Fresh Start Company. The balance sheet of Cey Co. shows:
Accounts receivable $16,000
Less: Allowance for doubtful accounts
1,200
$14,800
Equipment 20,000
Less: Accumulated depreciation
7,000
13,000
The partners agree that the net realizable value of the receivables is $13,500 and that the fair market value of the equipment is $11,000. Indicate how the four accounts should appear in the opening balance sheet of the partnership.