Granger Company wishes to liquidate the firm by distributing the company's cash to the three partners. Prior to the distribution of cash, the company's balances are: Cash $65,680; Niles, Capital (Cr.) $49,670; Dowagiac, Capital (Dr.) $19,540; and Vandalia, Capital (Cr.) $35,550. The income ratios of the three partners are 2:2:3, respectively. Prepare the entry to record the absorption of Dowagiac's capital deficiency by the other partners. 2 DEBIT AND 1 CREDIT Prepare the entry to record the distribution of cash to the partners with credit balances. 2 DEBIT AND 1 CREDIT