The partners of Donald, Chief & Berry LLP decided to liquidate on August 1, 2018. The balance sheet of the partnership is as follows, with the profit and loss ratio of 25%, 45%, and 30%, respectively. The partners do not expect to incur further liquidation expenses.

DONALD, CHIEF, & BERRY LLP
Balance Sheet
August 1, 2018
Assets				Liabilities & Partners' Capital
Cash	$	60,000		Trade accounts payable	$	130,000
Loan receivable from Donald		40,000		Loan payable to Chief		60,000
Other assets		500,000		Donald, capital		140,000
				Chief, capital		160,000
				Berry, capital		110,000
Total	$	600,000		Total	$	600,000

A portion of the Other Assets with a carrying amount of $200,000 were sold for $140,000, and all available cash was distributed.

Prepare the journal entry for Donald, Chief & Berry LLP on August 1, 2018, to record the offset of the loan receivable from Donald.