Problem 12-3A The partners in Crawford Company decide to liquidate the firm when the balance sheet shows the following. CRAWFORD COMPANY Balance Sheet May 31, 2017 Liabilities and owners' Equity $13,400 Cash $28,400 Notes payable 25,400 Accounts payable Accounts receivable 27,500 Allowance for doubtful accounts (1,500) Salaries and wages payable 3,800 Inventory 34,500 A. Jamison, capital 33,600 21,000 S. Moyer, capital Equipment 20,600 5,900 P. Roper, capita 3,000 Accumulated depreciation-equipment $101 900 Total $101900 Total The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence. 1. A total of $50,500 was received from converting noncash assets into cash. 2. Gain or loss on realization was allocated to partners. 3, Liabilities were paid 4. P Roper paid his capital deficiency. 5. Cash was paid to the partners with credit balances