Case 2: Installment Method The partnership will be liquidated on an installment basis. Distributions to the partners will be made as cash becomes available. The following transactions occurred in the first month: a. 75% of the total accounts receivable was collected for only 60,000. b. Half of the inventory was sold for 80,000. c. The equipment with carrying amount of 400,000 was sold for 240,000. d. 4,000 liquidation expenses were paid. Estimated future liquidation expenses totaled 2,000. e. 18,000 cash was retained in the business for potential unrecorded liabilities and anticipated expenses. The following transactions occurred in the second month: a. 20,000 was collected on the remaining accounts receivable; the balance was deemed uncollectible. b. The other half of the inventory was sold for 40,000. c. The remaining items included in the equipment account were sold for 60,000. d. 20,000 liquidation expenses and previously unrecorded liabilities were paid. e. The liquidation process ended at the end of the month