The partners in River Song Company decide to liquidate the firm when the balance sheet shows the following.

RIVER SONG COMPANY Balance Sheet May 31, 2012
Assets					Liabilities and Owners%u2019 Equity
Cash		$29,034			Notes payable		$13,632
Accounts receivable		24,256			Accounts payable		27,283
Allowance for doubtful accounts		(1,328	)		Salaries and wages payable		4,122
Inventory		34,114			A. Mangold, Capital		33,197
Equipment		21,084			S. Otis, Capital		19,007
Accumulated depreciation%u2014equipment		(5,839	)		P. Tyler, Capital		4,080
Total		$101,321			Total		$101,321

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 $45,087 was received from converting noncash assets into cash.
2.		Gain or loss on realization was allocated to partners.
3.		Liabilities were paid in full.
4.		P. Tyler paid his capital deficiency.
5.		Cash was paid to the partners with credit balances.