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 $ 19,400 69,500 Credit 55,500 192,500 $ 54,400 91,500 113,500 $336,900 77,500 $336,900 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 $53,800 on accounts receivable; the balance is uncollectible. 2. Received $40,100 for the entire inventory. 3. Paid $2,700 liquidation expenses. 4. Paid $51,600 to creditors, after offset of a $2,800 credit memorandum received on January 11, 20X1. 5. Retained $11,400 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. February 20X1 6. Paid $4,700 liquidation expenses. 7. Retained $6,700 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses.