Arch, Bibb, and Dao have been in partnership for a number of years. The partners allocate all profits and losses on a 4:3:3 basis, respectively. Recently, the partners have decided to terminate the business and liquidate assets. At the date the partnership ceases operations, the partnerships balance sheet is as follows:

Cash $130,000 Liabilities $50,000

Accounts Receivable 80,000 Arch, Capital (40%) 120,000

Buildings and Equipment 150,000 Bibb, Capital (30%) 100,000

Dao, Capital (30%) 90,000

Total Assets $360,000 Total Liabilities and Capital $360,000

Prepare journal entries for the following transactions:

A. Collected $60,000 from the $80,000 accounts receivable. $20,000 is written off as bad debt.

B. Paid $10,000 in liquidation expenses.

C. Paid $50,000 of the partnerships liabilities.

D. Distributed safe payments of cash; the partners anticipate no further liquidation expenses.

E. Sold land, building, and equipment for $80,000.

F. Distributed cash held by the business to the partners.