Bob is investing in a partnership with Andy. Bob contributes as part of his initial investment, Accounts Receivable of $80,000; an Allowance for Doubtful Accounts of $12,000; and $8,000 cash. The entry that the partnership makes to record Bob's initial contribution includes a :

a.credit to Bob, Capital for $88,000
b.debit to Accounts Receivable for $68,000.
c. credit to Bob, Capital for $76,000.
d.debit to Allowance for Doubtful Accounts for $12,000

To determine the correct entry that the partnership makes to record Bob's initial contribution, we need to understand the nature of Bob's contributions.

In this case, Bob contributed the following as part of his initial investment:

1. Accounts Receivable of $80,000
2. Allowance for Doubtful Accounts of $12,000
3. $8,000 cash

When Bob contributes the Accounts Receivable and the Allowance for Doubtful Accounts, these accounts need to be removed from his individual balance sheet because they are being transferred to the partnership. This is because the partnership will now be responsible for managing these accounts.

Now, let's look at the options provided:

a. Credit to Bob, Capital for $88,000
This option accounts for the total value of Bob's contributions ($80,000 + $12,000 + $8,000). However, it does not address the need to remove the Accounts Receivable and Allowance for Doubtful Accounts from Bob's individual balance sheet.

b. Debit to Accounts Receivable for $68,000
This option suggests that the partnership would debit the Accounts Receivable account for $68,000, but this does not accurately represent Bob's contribution.

c. Credit to Bob, Capital for $76,000
This option accounts for the cash contribution ($8,000) and properly removes the Accounts Receivable and Allowance for Doubtful Accounts from Bob's individual balance sheet ($80,000 - $12,000). This option seems to be the most accurate and appropriate entry for the partnership to make.

d. Debit to Allowance for Doubtful Accounts for $12,000
This option suggests that the partnership would debit the Allowance for Doubtful Accounts for $12,000. However, this represents the removal of the allowance, rather than reflecting Bob's initial contribution to the partnership.

Based on the analysis above, the correct entry that the partnership makes to record Bob's initial contribution is:

c. Credit to Bob, Capital for $76,000