Quick, Drake, and Sage share income and loss in a 3:2:1 ratio. The partners have decided to liqui¬ date their partnership. On the day of liquidation their balance sheet appears as follows:

Required Prepare journal entries for

(a) the sale of inventory,

(b) the allocation of its gain or loss,

(c) the pay¬ ment of liabilities at book value, and

(d) the distribution of cash in each of the following four separate cases: Inventory is sold for (1) $300,000; (2) $250,000; (3) $160,000 and any partners with capital deficits pay in the amount of their deficits; and (4) $125,000 and the partners have no assets other than those invested in the partnership. (Round to the nearest dollar.)

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QUICK, DRAKE, AND SAGE Balance Sheet May 31 Assets Liabilities and Equity Cash $ 90,400 Accounts payable Inventory 268,600 Quick, Capital $122,750 46,500 Drake, Capital 106,250 Sage, Capital 83,500 Total assets $359,000 Total liabilities and equity $359,000