On January 1, 20X1, partners Art, Bru, and Chou, who share profits and losses in the ratio of 5:3:2, respectively, decide to liquidate their partnership. The partnership trial balance at this date follows: Cash Accounts Receivable Inventory Machinery and Equipment (net) Accounts Payable Art, Capital Bru, Capital Chou, Capital Total Debit Credit $ 21,200 74,000 60,000 197,000 $ 56,200 96,000 118,000 82,000 $352,200 $352,200 The partners plan a program of piecemeal conversion of assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January 20X1 1. Collected $57,400 on accounts receivable; the balance is uncollectible. 2. Received $42,800 for the entire Inventory. 3. Paid $3,600 liquidation expenses. 4. Paid $52,000 to creditors, after offset of a $4,200 credit memorandum received on January 11, 20X1. 5. Retained $10,500 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. February 20X1 6. Paid $5,600 liquidation expenses. 7. Retained $4,900 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. March 20X1 8. Received $153,600 on sale of all items of machinery and equipment. 9. Paid $4,000 liquidation expenses. 10. Retained no cash in the business.