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On January $1,$ the partners of Mori, Lux, and Khan $($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:

$$DebitCreditCash$ $23,000$Accounts receivable$76,000$Inventory$62,000$Machinery and equipment, net$199,000$Mori$,$ loan$40,000$Accounts payable$$$ $73,000$Lux, loan$30,000$Mori, capital$123,000$Lux, capital$95,000$Khan, capital$79,000$Totals$ $400,000$$ $400,000$

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 Collected $$56,000$ of the accounts receivable; the balance is deemed uncollectible. January Received $$43,000$ for the entire inventory. January Paid $$7,000$ in liquidation expenses. January Paid $$65,000$ to the outside creditors after offsetting a $$8,000$ credit memorandum received by the partnership on January $11.$ January Retained $$15,000$ cash in the business at the end of January to cover liquidation expenses. The remainder is distributed to the partners. February Paid $$8,000$ in liquidation expenses. February Retained $$3,000$ cash in the business at the end of the month to cover additional liquidation expenses. March Received $$151,000$ on the sale of all machinery and equipment. March Paid $$10,000$ in final liquidation expenses. March Retained no cash in the business.

Required:

Prepare proposed schedules of liquidation on January $31,$ February $28,$ and March $31$ to determine the safe payments made to the partners at the end of each of these three months.

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