80.2K

Verified Solution

Link Copied!

please solve with details asap

On March 1, 2022, the partners of Judy, Scott, and Nelson (who shared profits and losses in the ratio of 4:4:2, respectively) decided to liquidate their partnership. The balance sheet at this date was as follows: The partners planned a program of piecemeal conversion of the business assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, was to be distributed to the partners at the end of each month. A summary of liquidation transactions during March follows: 1.$54,300 was collected on the accounts receivable; the balance was deemed to be uncollectible. 2. $125,600 was received for the entire inventory. 3. $4,700 in liquidation expenses were paid. 4. $108,100 was paid to outside creditors, after receiving a $6,300 credit memo from a creditor. 5. Cash of $7,800 was retained at the end of the month to cover unrecorded liabilities and anticipated expenses. The safe payment of cash was distributed to the partners. Requirements: (1) Calculate the actual loss for March and potential liquidation loss. (2) Calculate the safe payments to be made to the partners at the end of March. Round your final answers to the nearest dollar when needed. (1) Calculate the actual loss for March and potential liquidation loss. Answer: Actual loss: ; Potential loss: (2) Calculate the safe payments to be made to the partners at the end of March. Answer: Judy: Scott: Nelson

Answer & Explanation Solved by verified expert

See Answer