Compute the amount of cash to be invested by Mendez

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Question - On 9/30/19, Lopez admits Mendez for an interest in his business. On this date, Lopez's capital account shows a balance of 158,4000. The following were agreed upon before the formation of the partnership:

Prepaid expenses of 17, 500 and accrued expenses of 5,000 are to be recognized.

10% of the outstanding accounts receivable of Lopez amounting to 100,000 is to be recognized as uncollectible.

Mendez is to be credited with a one-fifth interest in the partnership and is to invest cash aside from the P30,000 worth of merchandise.

Required - Compute the amount of cash to be invested by Mendez?

Reference no: EM132637893

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