Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mei, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows.

Balance Sheet
Assets		Liabilities
Cash	$ 83,300	Accounts payable	$ 252,500
Inventory	550,200	Equity
		Kendra, Capital	76,200
		Cogley, Capital	171,450
		Mei, Capital	133,350
Total assets	$ 633,500	Total liabilities and equity	$ 633,500

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. Enter losses and partner deficits, if any, as negative amounts.) 1. Inventory is sold for $630,000. 2. Inventory is sold for $432,000. 3. Inventory is sold for $355,200 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $280,800 and partners with deficits do not pay their deficits.

Complete the schedule allocating the gain or loss on the sale of inventory is $630,000.

Step 1) Determination of Gain (Loss)
Proceeds from the sale of inventory		$630,000
Inventory cost
???
Step 2) Allocation of the Gain (Loss) to the Partners.
		KENDRA		COGLEY		MEI	Total
Initial capital balances		$76,200		$171,450		$133,350	$381,000
Allocation of gains (losses)							0
Capital balances after gains (losses)		$76,200		$171,450		$133,350	$381,000