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Jack Herington 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 Herington and Kaspar. Herington's investment in the partnership consists of $11,585 in cash, and the following assets of the proprietorship: accounts receivable $14,101 less allowance for doubtful accounts of $1,778, and equipment $20,022 less accumulated depreciation of $4,477. It is agreed that the allowance for doubtful accounts should be $2,667 for the partnership. The fair market value of the equipment is $12,927.
Instructions: Journalize Herington's admission to the firm of Kaspar and Herington.
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