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 Cash Inventory Liabilities and Equity $ 90,400 Accounts payable 537,600 Kendra, Capital $255,000 74,600 167,850 130,550 Cogley, Capital Mei, Capital otal assets $628,000 Total liabilities and equity$628,000 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 $622,200. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory Cost Gain on sale Step 2) Allocation of the gain (loss) to the partners. $622,200 537,600 84,600 KENDRA COGLEY MEI Total 130,550 $ 373,000 84,600 $ 457,600 74,600 $167,850 $1 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 3 6 42,300 2/6 28,200 1/6 14,100 $116,900 $196,050 $144,650