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 MEI Balance Sheet May 31

Assets Liabilities and Equity

Cash $94,600

Inventory $536,400

Total Inventory $631,000

Accounts Payable $247,000

Kendra, Capital $76,800

Cogley, Capital $172,800

Mei, Capital $134,400

Total Liabilities and Equity $631,000

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 $625,800

Record the sale of inventory.

Allocate the gain(loss) on the sale of inventory to the partners.

Record the payment of the liabilities.

Record the disbursement of the remaining cash to the partners.

(2) Inventory is sold for $478,200.

Record the sale of inventory.

Allocate the gain(loss) on the sale of inventory to the partners.

Record the payment of the liabilities.

Record the disbursement of the remaining cash to the partners.

(3) Inventory is sold for $308,400 and any partners with capital deficits pay in the amount of their deficits.

Record the sale of inventory.

Allocate the gain(loss) on the sale of inventory to the partners.

Record the payment of the liabilities.

Record the disbursement of the remaining cash to the partners.

(4) Inventory is sold for $270,600 and the partners have no assets other than those invested in the partnership.

Record the sale of inventory.

Allocate the gain(loss) on the sale of inventory to the partners.

Record the payment of the liabilities.

Record the disbursement of the remaining cash to the partners.