Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows KENDRA, COGLEY, AND ME Balance Sheet May 31 Liabilities and Equity Assets Cash Inventory S 87,500 Accounts payable 543,000 Kendra, Capital $ 260,000 74,100 166,725 129,675 Cogley, Capital Mei, Capital Total assets 630,500 Total liabilities and equity $630,500 Required For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted should be entered with a minus sign.) (1) Inventory is sold for $609,600 Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory Cost $ 609,600 Step 2) Allocation of the gain (loss) to the partners KENDRA COGLEY MEI Total 74,100 $ 166,725 $ 129,675$370,500 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 74,100 $166,725 $129,675 370,500