On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Cash Accounts receivable. Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals Debit $ 32,000 Credit 94,000 80,000 217,000 58,000 $ 89,000 48,000 152,000 104,000 88,000 $ 481,000 $ 481,000 The partners plan a program of piecemeal conversion of the partnership's 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 February Collected $65,000 of the accounts receivable; the balance is deemed uncollectible. Received $52,000 for the entire inventory. Paid $8,000 in liquidation expenses. Paid $80,000 to the outside creditors after offsetting a $9,000 credit memorandum received by the partnership on January 11. Retained $24,000 cash in the business at the end of January to cover liquidation expenses. The remainder is distributed to the partners. Paid $9,000 in liquidation expenses. Retained $12,000 cash in the business at the end of the month to cover additional liquidation expenses.